Rupee depreciates 9 paise to 73.18 against US dollar in early trade

The Indian rupee slumped 9 paise to 73.18 against the US dollar in opening trade on Thursday tracking strengthening of the American currency in the overseas market.

Market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday, forex traders said.

At the interbank foreign exchange, the domestic unit opened lower at 73.17 against the dollar, and lost further ground and touched 73.18, registering a fall of 9 paise over its previous close.

On Wednesday, the rupee had settled at 73.09 against the US dollar.

Most Asian currencies have started mostly flat to marginally stronger against the US dollar this morning and could lend support, Reliance Securities said in a research note.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 89.96.

Global oil benchmark Brent crude futures advanced 0.62 per cent to USD 71.79 per barrel.

On the domestic equity market front, BSE Sensex was trading 309.99 points or 0.60 per cent higher at 52,159.47, while the broader NSE Nifty advanced 85.90 points or 0.55 per cent to 15,662.10.

Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth Rs 921.10 crore, as per exchange data.

Meanwhile, with 1,34,154 fresh cases, India's COVID-19 tally has climbed to 2,84,41,986, while the daily positivity rate has further dropped to 6.21 per cent, the health ministry said on Thursday.