Mumbai, India (BBN) – Paring its early gains, the rupee slipped by 1 paisa to trade at 67.83 against the US currency in the pre-noon deals following bouts of fresh month-end dollar demand from banks and importers.
The rupee opened flat at 67.82 per dollar at the Interbank Foreign Exchange (Forex) market, reports The Hindu Business Line.
The domestic unit hovered between 67.85 and 67.78 per dollar during morning deals before trading at 66.83 per dollar at 11:25am local time.
Forex dealers said that the rupee is expected to trade sideways with negative bias in the absence of any major cues.
Weak stock markets and capital outflows also influenced the rupee sentiment, they added.
Meanwhile, the benchmark BSE Sensex was trading down by 226.41 points or 0.87 per cent at 25,814.29.
The NSE Nifty too was trading lower by 74.55 points or 0.94 per cent at 7,910.60 due to fall in metal, pharma and banking stocks. Of the 50 Nifty stock, 45 were in the red led by Hindalco which declined by over 4 per cent in early trade.
Overseas, the dollar dipped against the yen early today, edging lower after US Treasury yields fell on mixed economic data. Trading was subdued as many key markets remained closed today for the Christmas holidays.
Crude prices hold steady as the market waits to see how OPEC would manage its planned output cuts with Libya expecting to boost production.