Indian rupee declined further, reaching 82.93 per dollar as a result of the surge in crude oil prices

The Indian rupee opened marginally down versus the US dollar on Wednesday, as the greenback strengthened and crude oil prices rose. The local currency began at 82.93 per dollar, up from 82.92 at the previous close.

Read more : Vegetable price reductions caused India’s retail inflation to decline more than anticipated from 7.44% to 6.83%.

The US dollar index remained unchanged at 104.60, while Asian currencies and stocks were mixed. Treasury rates rose on Wednesday, with the two-year note reaching 5.0264% and the ten-year note remaining at 4.2881%.

While rising crude oil prices weighed on the rupee, reduced levels of domestic inflation helped the local currency.

Crude oil prices rose, lingering at a 10-month high, as predictions of tighter global supply and fears of a supply disruption in Libya offset concerns about slower demand in some countries, including China, according to Reuters.

Brent futures jumped 0.1% to $92.14 per barrel, while WTI crude in the United States rose 0.2% to $88.98 per barrel.

Meanwhile, retail inflation in India fell in August but stayed above the top end of the central bank's target band for the second month in a row. In August, CPI inflation declined to 6.83% from 7.44% in July. According to official data, the Index of Industrial Production (IIP) increased by 5.7% in July.

Investors will now be looking for indications on the US Federal Reserve's policy stance in the key US inflation data due out on Wednesday.

On the local front, the Sensex and Nifty indices in India were trading down in the pre-opening session.

According to preliminary statistics available on the exchanges, foreign institutional investors (FIIs) net sold Indian shares worth 1,047.19 crore on Tuesday, while domestic institutional investors (DIIs) net acquired shares worth 259.48 crore.

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