The rupee cut early gains to settle 14 paise lower at 76.32 (temporarily) against the US dollar on Wednesday due to month-end dollar demand from importers and rising crude oil prices amid geopolitical uncertainty.
In the interbank foreign exchange market, the rupee opened strong at 76.08 against the American currency but was unable to hold momentum and entered negative territory during the session.
The domestic unit finally closed at 76.32 against the US dollar, down 14 paise from the previous close.
On Tuesday, the rupee was flat at 76.18 against the American currency.
“The Indian rupee depreciated for the third day in a row following dollar demand from importers towards the month and end of the financial year as well as a rebound in crude oil prices,” said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar further added that global financial markets have been looking for a clear direction despite the ongoing geopolitical uncertainty. The US Fed’s hawkish bets have supported gains in dollars.
The dollar index, which measures the strength of the U.S. dollar against a basket of six currencies, traded 0.14 percent higher at 98.63.
The global benchmark Brent crude oil futures jumped 2.16 percent to USD 117.97 a barrel.
Ahead of the domestic equity market, the Sensex 30 shares ended 304.48 points or 0.53 percent lower at 57,684.82, while the broader NSE Nifty was down 69.85 points or 0.4 percent to 17,245.65.
Foreign institutional investors emerged as net buyers in the capital market on Tuesday, when they bought shares worth Rs 384.48 crore, according to stock exchange data.