Indian rupee, the dometic currency benchmark, depreciated 29 paise to 73.32 per dollar on Thursday's in opening deals, amid weak momentum in the domestic equities and strong US dollar.
The local unit opened on a weak note at 73.23 on the interbank forex market, and fell further to 73.32, registering a fall of 29 paise over its last close of 73.03.
Dollar index steadied against the basked of six Asian currencies today and traded 0.07 per cent higher to 92.91. This was after a gain of 0.6% in the last session, backed by robust US manufacturing sector, giving hopes of an economic recovery.
Forex traders said strong dollar and muted domestic equities weighed on investor sentiment. However, sustained foreign fund inflows supported the rupee and restricted the decline.
On the domestic equity market front, Domestic benchmarks Sensex and Nifty turned volatile by the afternoon session and traded tad lower on Thursday, as investors turned cautious ahead of key data release worldwide. Sensex fell 58 points lower to 39,026 and Nifty was falling 9 points lower at 11,526.
Moreover, investors awaited outcome from FM Sitharaman's review meeting with heads of banks and NBFCs on September 3 for smooth and speedy implementation of the one-time debt recast for resolution of COVID-19 related stress in bank loans.
Foreign portfolio investors (FPIs) bought shares worth Rs 990.57 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 657.48 crore in the Indian equity market on Wednesday, provisional data showed.
Oil price fell more than 2% as demand fell US hinted by the recent government data ignoring bullish crude inventory data. Brent crude futures, the global oil benchmark was trading 0.07 per cent lower at USD 44.40 per barrel.
Worldwide, there were 261 lakh confirmed cases and 8.67 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 67,486 and total coronavirus cases to 38.53 lakh as of Thursday.