Rupee falls 10 paise to 82.35 against U.S. dollar in early trade

The rupee depreciated 10 paise to 82.35 against the U.S. dollar in early trade on May 17, weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities.

The rupee depreciated 10 paise to 82.35 against the U.S. dollar in early trade on May 17, weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities.

At the interbank foreign exchange, the domestic unit opened at 82.29 against the dollar, then fell to 82.35, registering a decline of 10 paise over its last close.

On May 16, the rupee settled at 82.25 against the dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04% to 102.60.

Brent crude futures, the global oil benchmark, advanced 0.11% to $74.99 per barrel.

"A risk-off sentiment could increase the demand for USD or if Houses manage to crack the deal, then on rising prospects of continuation of U.S. growth, the USD will strengthen and other emerging market currencies will weaken," CR Forex Advisors Managing Director Amit Pabari said.

However, a slew of FDI (Foreign Direct Investment) flows could restrict the intensity of depreciation. Further, the Reserve Bank of India could also keep a close eye on the rates and volatility, Mr. Pabari added.