Rupee declines 5 paise to 82.95 against U.S. dollar on firm crude prices

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The rupee declined 5 paise at 82.95 against the U.S. dollar on March 19 due to firm crude oil prices and foreign fund outflows.

At the interbank foreign exchange market, the rupee opened at 82.94 to a dollar, down 4 paise over the previous close of 82.90.

The local currency moved in a tight range of 82.93 to 82.95 to a dollar in early deals. The rupee traded at 82.95, down 5 paise, against the U.S. dollar at 9.15 a.m.

A stronger U.S. dollar and firm bond yields ahead of the U.S. Fed interest rate decision also weighed on the local unit, forex dealers said.

The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies gained 0.20% to 103.64.

Brent crude, the global crude oil benchmark, also stayed above $86 per barrel to trade at around four-month high levels.

Losses in local stocks also weighed on the rupee. Benchmark BSE Sensex declined by 398.79 points or 0.55% to 72,349.63 while broader Nifty dropped 120.10 points or 0.54% to 21,935.60.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,051.09 crore on March 18, according to exchange data.