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Rupee drops to 23 paise to 79.68 against the U.S. dollar in opening trade on August 18.
The strength of the American currency was tracked in order to know its value in different countries. The rupee opened at 79.60 against the US dollar, then fell to 79.68, registering a decline of 23 paise over the last close at the interbank foreign exchange.
On August 17, the rupee gained 29 paise to settle at 79.45 against the dollar.
The dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.06 per cent to 106.64, as the Federal Open Market Committee (FOMC) meeting minutes showed that though things are slowing in the US, the Fed is not done with the increase in rates.
On the domestic equity market front, the 30-share Sensex was trading 229.29 points or 0.38 percent lower at 60,030.84, while the broader NSE Nifty was down 61.15 points or 0.34 percent to 17,883.10.
Foreign institutional investors endured net buyers in the capital market as they purchased shares worth Rs 2,347.22 crore, as per exchange data.
At the same time, global oil benchmark Brent crude futures advanced 0.14 per cent to USD 93.78 per barrel.
The rupee jumped at the open concerning global growth outlook dented oil prices. However, the oil prices remained subdued before the release of minutes from the Federal Reserve's previous policy meeting.
The fall of the Indian rupee happens when the Indian currency weakens by importing from the United States or any country, India will have to pay more because the payment is done in dollars, that is less import costs more.
The prime reason for this fall in the rupee can be said to be the rise in crude oil prices, foreign investors withdrawing money from the Indian market and the monotonous environment of domestic business.
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