Rupee falls 2 paise to 81.96 against US dollar in early trade

The Indian rupee weakened by 2 paise to 81.96 against the US dollar due to pessimistic sentiments in the Asian markets and hikes in crude oil prices. However, the Indian currency gained support from positive sentiments in the domestic equities market and inflows of foreign funds. The dollar index, which assesses the strength of the greenback against six other currencies, advanced 0.02% to 101.50. The buying trend of foreign investors, which was Rs 1,833.13 crore on Wednesday, provided support to the rupee. All eyes are now on the upcoming inflation data, which will provide hints for the Reserve Bank of India’s next moves.