Rupee plunges 11 paise against US dollar in early trade

Folow The Hindu’ s updates on rupee trade: Rupee falls to 83.93 against USD due to rising crude oil prices and negative equity markets sentiment.

Rupee depreciated 11 paise to 83.93 against the US dollar in early trade on Thursday (October 3, 2024) due to rising crude oil prices and negative sentiment in the domestic equity markets amid concerns over escalating tension in the Middle East.

Unabated outflow of foreign funds from capital markets and a strengthening American currency also weighed on the Indian currency, forex traders said.

At the interbank foreign exchange, the local unit opened at 83.91 and lost further ground to touch 83.93 against the greenback, trading 11 paise lower from its previous session's closing level.

On Tuesday, the rupee settled 3 paise lower at 83.82 against the American currency. The forex markets were closed on Wednesday on account of Mahatma Gandhi Jayanti.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 per cent to 101.53.

Brent crude, the international benchmark, climbed 1.11 per cent to 74.72 in futures trade.

Experts attributed the spike in crude prices to fear of Israeli attacks on Iran's oil installations amid escalating tension in the Middle East.