In early trading, the rupee drops 3 paise to 83.36 versus the US dollar

Mumbai: Following a downward trend in local stocks and rising crude oil prices, the rupee fell 6 paise to 83.39 versus the US dollar in early trading on Thursday.
The rupee is anticipated to trade with a small negative bias due to persistent inflows of foreign funds, according to forex dealers.

The rupee fell 6 paise from its previous closing at the interbank foreign exchange, opening at 83.34 versus the dollar and reaching an early low of 83.39 against the greenback.

The rupee steadied in a small range on Wednesday, ending 2 paise down at 83.33 versus the US dollar.

As markets await the results of the Bank of Japan meeting, the US GDP, the US Personal Consumption Expenditure (PCE) Prices Index, and the US GDP, forex dealers said the rupee moved in a range-bound manner on Wednesday and is predicted to remain in a narrow range on Thursday as well.

In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, decreased by 0.07 percent to 105.78.

The benchmark for global oil, Brent crude futures, increased by 0.11 percent to USD 88.12 a barrel.

Regarding the local stock market, the Sensex dropped to 73,840.50, a decrease of 12.44 points, or 0.02 percent. The Nifty dropped to 22,390.65, down 11.75 points, or 0.05 percent.

According to exchange statistics, foreign institutional investors (FIIs) offloaded shares worth Rs 2,511.74 crore on Wednesday, making them net sellers in the capital markets.