Fresh demand for the American unit from importers put pressure on the rupee.
In line with rally in stocks, the Indian rupee on Monday appreciated for the second straight session and closed with a eight paise gain at a one-week high of 61.36 against the Greenback.
Muted global trend after a report that US President Donald Trump was preparing to impose more tariffs on China hurt trading sentiments.
The slowdown in India is related to a credit squeeze, which is a cyclical problem - not a structural problem: American economist Steve Hanke.
At the close, the 50-share NSE Nifty was at 8,611.15, up 19.90 points, or 0.23 per cent, after moving between 8,637.15 and 8,555.20.
On Tuesday, the rupee had gained 10 paise to close at 66.52.
Sensex lost 184 points to trade at 23,878 and the Nifty has dropped 55 points to quote at 7,254.
Marking a key milestone in the Indian government's fight against black money allegedly stashed abroad, India will get this month the complete information on flats, apartments and condominiums owned by Indians in Switzerland as also on earnings made from such properties to help it look into tax liabilities associated with those assets.
Unwinding of long-dollar positions by speculative traders and the currency's strong underlying fundamentals buoyed the home unit
Gold, which lost its sheen to some extent in the second half of 2021, is likely to regain the glitter in the New Year and cross the Rs 55,000-per-10-grams level amid pandemic woes, inflation worries and stronger US dollar. After a stellar run up in 2020 when the yellow metal touched a record high of Rs 56,200 on the MCX in August, the prices are near Rs 48,000 per 10 grams now. This is roughly 14 per cent lower from the all-time highs and 4 per cent lesser compared to January 2021 levels.
Strong foreign fund inflows, a weakening dollar and slipping oil prices propped up the local unit.
Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade on Monday.
The S&P BSE Sensex plunged 128 points to end at 25,102.
Foreign institutional investors were net buyers in Indian equities worth Rs 277.92 crore on Tuesday
'Global investors expect the rupee to be more vulnerable in the downturns in the future than ever before,' notes Apoorva Javadekar.
8 out of 12 sectoral indices closed in red with BSE IT and Healthcare indices losing 0.5%.
The 50-share NSE Nifty slipped below the 8,200-mark to touch a low of 8,154.45, but settled at 8,170.80, down 90.95 points, or 1.10 per cent
Sensex ended strong, Tata Steel, HUL climb higher.
Experts point to the bitter experience of countries including Mexico, Thailand, South Korea and Russia and desist from going forward with plans of issuance of such securities. They say rather than going abroad, the country should increase participation of foreign investor in the government securities which does not have any forex risk.
Forex dealers said besides the dollar gaining against other currencies in the global markets on the back of a strong US economy, increased demand for the American unit from importers weighed on the rupee but a higher opening in the domestic equity markets, capped the fall.
The Indian currency on Friday traded at 62.48, down 41 paise against the US dollar at 1645 hours.
The President-elect has already infuriated China by talking over phone with the Taiwanese President, the first by a top American leader since 1979.
If elected president, the Republican nominee said he would declare China a currency manipulator, cancel payments to United Nations for combating climate change and renegotiating NAFTA.
'When the rupee was at 65 a dollar, we wanted to go to Thailand for a holiday.' 'Now at 72, we may find Goa much more attractive.' 'That's how correction happens.' 'If you don't let that correction happen, then it's a pressure cooker that bursts one day.'
India's economy could also suffer some ill-effects without necessarily triggering retaliation via higher tariff barriers against Indian goods, says Devangshu Datta.
Investors will remain cautious ahead of F&O expiry.
Trump said if elected the US under his administration would pursue right away to bring back jobs.
Pakistan-born Canadian writer Tarek Fatah on Saturday said the Modi government's decision to demonetise 500 and 1000 rupee currency notes has hit Pakistan-sponsored terror activities against India and flow of counterfeit currency has been terminated.
'Women's voices are too high or too low, or they are seen as too short or too tall, or too fat or too thin, to be great leaders.' 'These judgments wear us down.'
In worldwide trade, the American dollar traded with solid strength against all major emerging currencies
BSE Mid-cap index ended lower by over 2.5% and BSE Small-cap index tumbled over 3%.
The US dollar index, which tracks the greenback against a basket of six major currencies, was 0.38 per cent lower at 95.41.
On the sectoral front, rate-sensitive sectors such as Bankex and Auto gained by 1% and 0.7% respectively while BSE Consumer Durables gained 1.4%.
So far this month, another $4.5 billion (Rs 33,000 crore) has flown into domestic stocks.
'With English the most rapidly growing medium of instruction in India's schools and accounting now for more than one-sixth of the total (next only to Hindi, which accounts for a half), India is not about to turn its face away from a language that has global currency,' notes T N Ninan.<
The government would take a number of steps to energise and deepen the country's corporate bond as well as currency derivatives market.
The US president, who has expressed disappointment over China's handling of the COVID-19 pandemic, claimed that it was the "incompetence" of Beijing that led to the mass killing across the globe.
Heavy dollar selling by banks and exporters alongside debt-related inflows largely supported the rupee
Markets across the globe gained after China Securities Regulator removed its four-day-old circuit-breaker system.
Sensex opened at 25,817 levels, 47 points down.
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