Rupee slips 21 paise to 75.85 against US dollar in early trade

The Indian rupee fell 21 paise to 75.85 against the US dollar in opening trade on Wednesday, as investors braced for a prolonged period of uncertainty as coronavirus cases rise.

Forex traders said rising brent prices and firm US dollar index weighed on the local unit.

The rupee opened weak at 75.83 at the interbank forex market and then fell further to 75.85, down 21 paise over its last close.

The rupee had settled at 75.64 against the US dollar on Tuesday.

According to Reliance Securities rising brent prices and firm US Dollar Index could limit gains for the rupee.

"Risk appetite could remain weak as US equity markets gave up gains, while Asian equities have started marginally lower this Wednesday morning," it noted.

There are more than 14.30 lakh declared cases of coronavirus worldwide. In India, the tally of confirmed coronavirus cases has crossed the 5000-mark.

Brent crude futures, the global oil benchmark, rose 2.51 per cent to USD 32.67 per barrel.

Foreign institutional investors (FIIs) were net buyers in the capital markets, as they sold bought shares worth Rs 741.77 crore on Tuesday, as per provisional data.

Domestic bourses opened on a bullish note with benchmark indices Sensex trading 1000.14 points up at 31,067.35 and Nifty up 144.75 points at 8,936.95.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.27 per cent to 100.16.