The rupee opened on a flat note and edged lower by 3 paise to 72.77 against the US dollar in opening trade on Thursday amid a muted trend in the domestic equity market.
At the interbank forex market, the domestic currency opened at 72.76 against the US dollar, then inched lower to 72.77 against the American currency — registering a fall of just 3 paise over its previous close.
On Wednesday, the rupee had settled at 72.74 against the American currency.
“The Indian rupee started on a flat note against the greenback as the strength of the US dollar could be offset by exporter bids,” Reliance Securities said in a research note.
Meanwhile, Asian currencies are weak this morning and could weigh on sentiments, the note added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent down at 90.93.
“The US dollar Index is trading flat in Asian trade but downside remained capped as upbeat data bolstered expectations for the US to recover from the pandemic faster than most of its peers,” the note said.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 5.77 points higher at 51,709.60, and the broader NSE Nifty advanced 14.20 points to 15,223.10.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 1,008.20 crore on Wednesday, according to exchange data.
Brent crude futures, the global oil benchmark, rose 1.07 per cent to $65.03 per barrel. .
The domestic currency is likely to strengthen 1.3 per cent and average 73.5 against the US dollar in the financial year 2022-23 compared with an average level of 74.4 in the financial year 2021-22.