The Indian rupee depreciated by 12 paise to 74.54 against the US dollar (20.31 versus the UAE dirham) on Wednesday morning, tracking stronger American currency.
At the Indian interbank foreign exchange, the rupee opened on a weak note at 74.53, then lost further ground and touched 74.54 against the dollar in initial deals, registering a decline of 12 paise from the last close.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.06 per cent to 96.55.
Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors, said Asian currencies were trading slightly weak and European currencies continue to languish lower as coronavirus fresh cases and US rate hike prospects keep dollar higher.
According to Bhansali, the rupee is likely to move within a range of 74.30 to 74.70 during the day.
"Exporters may either sell for cash or very near term or far term and keep positions for medium term open targeting 75.00 at least. Importers to hedge at 74.30 and 74.40 levels," he said.
On the Indian equity market front, the 30-share Sensex was trading 95.59 points or 0.16 per cent higher at 58,759.92, while the broader NSE Nifty advanced 39.40 points or 0.23 per cent to 17,542.75.
(With inputs from PTI)
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