Rupee depreciates 11 paise to 82.30 against US dollar in closing trade

The rupee depreciated by 11 paise to close at 82.30 (provisional) against the US dollar on Monday as risk-off sentiment among investors and sustained foreign capital outflows weighed on the local unit.

However, a rally in the domestic equities and a weak greenback overseas restricted the rupee's fall, traders said.

At the interbank foreign exchange market, the local currency opened lower at 82.33 and later fell to a low of 82.42. The unit finally settled at 82.30 against the American currency, registering a decline of 11 paise over its previous close.

In the previous session on Friday, the local currency had settled at 82.19 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.47 per cent to 112.78.

Global oil benchmark Brent crude futures rose 0.28 per cent to USD 91.89 per barrel.

On the domestic equity market front, the 30-share BSE Sensex surged 491.01 points or 0.85 per cent to end at 58,410.98, while the broader NSE Nifty advanced 126.10 points or 0.73 per cent to 17,311.80.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 1,011.23 crore on Friday, according to exchange data.

FIIs have pulled out nearly Rs 7,500 crore from the Indian equity markets in the first two weeks of October on concerns of monetary policy tightening by the US Federal Reserve and other central banks globally, which could hamper global economic growth.