Rupee falls 7 paise to 90.96 against the US dollar in early trade

Mumbai: The rupee fell by 7 paise to 90.96 against the US dollar in early trade on Tuesday, weighed down by a rise in global crude oil prices and a stronger greenback.

A poor start to the domestic equity markets further pressured the local unit, but FII inflows provided support, preventing a sharp fall, forex traders said.

At the interbank foreign exchange, the rupee opened at 90.91 against the US dollar and slipped further to 90.96, down 7 paise from its previous close.

The rupee gained 5 paise to settle at 90.89 against the US dollar on Monday.

"The Reserve Bank might be intervening to keep the rupee away from 91.00 levels, but the buying will itself allow it to go beyond 91.00 levels," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent higher at 97.81.

"The dollar index was higher amid a repositioning... It faces headwinds from (US President Donald) Trump's 15 per cent global tariffs announcement after the unfavourable Supreme Court ruling," Bhansali said.

Brent crude, the global oil benchmark, rose sharply by 0.85 per cent to USD 72.10 per barrel.

On the domestic equity market front, the Sensex tumbled 525.29 points to 82,769.37 in early trade, while the Nifty went down 145.85 points to 25,567.15.

On Monday, foreign institutional investors purchased equities worth Rs 3,483.70 crore, according to exchange data.