INR drops lower as greenback firms up

The Indian rupee declined 5 paise to 83.96 (provisional) against the US dollar on Tuesday, tracking a strong greenback against major currencies overseas and a sluggish trend in domestic equities. The US dollar index is advancing to a two-week high on Tuesday tracking higher yields as investors braced for key US jobs data this week that could influence the magnitude of an expected Federal Reserve interest rate cut this month. US benchmark treasury yields were higher at 3.9% and dollar index gained towards 102 mark. Meanwhile, the benchmark S&P/BSE Sensex ended the session down 4.40 points at 82,555.44, snapping a ten-day winning streak. The broader NSE Nifty index settled 1.15 points higher at 25,279.85, extending gains for the 14th straight session. However, lower crude oil prices in international markets capped the decline in the local unit. At the interbank foreign exchange market, the rupee opened 3 paise lower at 83.94 against the American currency and traded in the range of 83.94-83.98 during the day.

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