The Indian rupee has fallen 16 paise to 93.32 against the US dollar in early trade on Tuesday amid a strong dollar and the RBI's easing of restrictions on the currency.
The forex traders said despite the prevailing tensions in Western Asia, the domestic markets' inflow of foreign funds supported the local currency, which is reflected in the stock markets, though the strong dollar has caused the depreciation of the value of the Indian currency.
The Reserve Bank of India on Monday partially withdrew directives taken on April 1 to curb excessive speculation in the rupee.
The regulator had capped the net open position in non-deliverable forward markets at USD 100 million, mandating banks to comply by April 10.
However, after the RBI on Monday eased the regulations in the interbank foreign exchange market, the rupee opened at 93.25 and fell to the 93.37 level before trading at 93.32 against the greenback in early deals, registering a loss of 16 paise from the previous closing level.
The rupee on Monday declined 25 paise to 93.16 against the US dollar, losing gains attained in the previous two sessions.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 97.94.
Besides, the Brent crude oil was trading 0.61 per cent down at $94.99 per barrel in futures trade.
In the domestic equity markets, the 30-share Sensex was trading 379.33 points, or 0.48 per cent, up at 78,899.63 in early trade, while the Nifty rose 103.70 points, or 0.43 per cent, to 24,468.55.
Also read: Indian stock market opened in green amid positive global cues
Follow us
