The rupee depreciated 4 paise to 79.96 against the US dollar in opening trade on Wednesday amid demand for dollar from oil importers and firm crude oil prices.
Forex traders said significant dollar demand from oil importers, firm crude oil prices as well as concerns about swelling trade deficit weighed on investor sentiments, reports PTI.
On Tuesday, the rupee recovered from its all-time low of 80.05 to close 6 paise higher at 79.92 against the US dollar following forex inflows and suspected RBI intervention.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, Asian currencies are all up against the dollar. "Oil companies are still buying USD along with panicked importers," Bhansali said.
On the domestic equity market front, the 30-share Sensex was trading 637.17 points or 1.16 per cent higher at 55,404.79, while the broader NSE Nifty advanced 188.45 points or 1.15 per cent to 16,529.00.