Rupee Slips Below 96 Per Dollar Level In Early Trade

The rupee depreciated 19 paise to breach the 96 level against the US dollar for the first time in over two months in early trade on Thursday following weak investor sentiments amid global uncertainties.

The currency, however, pared losses and traded with a gain of 10 paise following suspected RBI intervention.

According to forex analysts, the rupee is expected to see high volatility pressured by elevated crude oil prices hovering at $105 per barrel and the broad strength of the American currency in the overseas market.

Moreover, a rate hike of 25 basis points by the US Federal Reserve, which came for the first time in three years, added strength to the greenback and put additional pressure on the domestic currency.

At the interbank foreign exchange market, the rupee opened at 95.88 and lost further ground to trade at 96.10 against the US dollar in early deals, down 19 paise from its previous close, breaching the crucial 96 level for the first time since July 24.

In initial trade, the currency also touched 95.81, registering a gain of 10 paise from its previous close.

On Wednesday, the local unit ended 3 paise lower at 95.91 against the American currency, extending its downward trend for the seventh session in a row.

In the preceding six sessions, the rupee has lost 148 paise, or more than 1.4%, since the closing level of 94.43 against the greenback recorded on September 4.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10% higher at 100.07.

Brent crude, the global oil benchmark, was trading 0.26% lower but remained elevated at $105.55 per barrel in futures trade.

On the global front, the US House of Representatives passed a bill authorising President Donald Trump to impose sanctions on Russia and steep tariffs on its trading partners in oil and gas, including India and China.

In domestic equities, Sensex rose 183.42 points, or 0.25%, to 74,519.87, while the Nifty advanced 71.45 points, or 0.31%, to 23,288.65.

Foreign institutional investors (FIIs) offloaded equities worth ₹2,032.61 crore on a net basis on Wednesday, according to exchange data.