Mumbai, February 24 The rupee fell by 7 paise to 90.96 against the US dollar in early trading on Tuesday, weighed down by rising global crude oil prices and a stronger dollar.
A poor start to the domestic equity markets further put pressure on the local currency, but inflows from foreign investors provided support, preventing a sharp fall, forex traders said.
At the interbank foreign exchange, the rupee opened at 90.91 against the US dollar and further slipped to 90.96, down 7 paise from its previous close.
The rupee gained 5 paise to settle at 90.89 against the US dollar on Monday.
"The Reserve Bank may be intervening to keep the rupee away from the 91.00 level, but the buying pressure itself will allow it to go beyond 91.00 levels," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, was trading 0.11 per cent higher at 97.81.
"The dollar index was higher due to repositioning... It faces headwinds from (US President Donald) Trump's announcement of 15 per cent global tariffs after the unfavorable Supreme Court ruling," Bhansali said.
Brent crude, the global oil benchmark, rose sharply by 0.85 per cent to USD 72.10 per barrel.
On the domestic equity market front, the Sensex tumbled 525.29 points to 82,769.37 in early trading, while the Nifty went down 145.85 points to 25,567.15.
On Monday, foreign institutional investors purchased equities worth Rs 3,483.70 crore, according to exchange data.
