The rupee fell 27 baisas to 78.80 against the US dollar at the opening of trading on Wednesday, following the muted trend in local stocks.
In the interbank foreign exchange, the rupee opened at 78.70 against the US dollar, then fell to 78.80 against the dollar, recording a decrease of 27 baisa during the last close.
On Tuesday, the rupee rose 53 paisa – its best one-day gain in more than 11 months – to close at a one-month high of 78.53 against the US dollar.
The dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.07 percent to 106.16.
Brent crude oil futures, the global benchmark, fell 0.42 percent to $100.12 a barrel.
In terms of the local stock market, the Sensex, which includes 30 shares, traded 86.44 points, or 0.15 percent, at 58,049.92 points, while the broader NSE Nifty index fell 55.10 points, or 0.32 percent, to 17,290.35 points.
Experts said that foreign portfolio investor (FPI) inflows have changed in local stocks and crude oil prices have remained flat. This has reduced pressure on the rupee. However, export data for July weighed on investor confidence.
Foreign institutional investors remained net buyers in the capital market on Tuesday, buying shares worth Rs 825.18 crore, according to exchange data.
India’s exports fell, albeit marginally, for the first time in 17 months in July, while the trade deficit tripled to a record $31 billion, buoyed by a more than 70 percent increase in crude oil imports.
July 2022 exports of $35.24 billion showed a 0.76 percent year-on-year decline. The country’s merchandise exports amounted to 35.51 billion US dollars in July 2021.