The Indian rupee gave up its early gains to trade flat on Tuesday, weighed down by weak domestic equities, rising crude oil prices, and fears about the aggressive US Federal Reserve.
The local currency began trading at 79.73 against the US dollar on the interbank forex market and eventually finished at 79.78 provisionally, unchanged from its previous level. During the day, the local currency reached an intraday high of 79.72 and a low of 79.81 against the US dollar.
Furthermore, lower domestic shares and increased crude oil prices weighed on the domestic currency. The dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.31 percent to 106.81.
Brent crude futures increased 1.71 percent to USD 106.95 per barrel, the global oil benchmark. On the Indian share market front, the BSE Sensex finished 497.73 points, or 0.89 percent, lower at 55,268.49, while the broader NSE Nifty fell 147.15 points, or 0.88 percent, to 16,483.85.
According to exchange data, foreign institutional investors continued to be net sellers in the capital market on Monday, selling shares worth Rs 844.78 crore.
Market falls, Top Stocks to buy today