The rupee depreciated by seven paise to 79.23 against the US dollar in early trade on Wednesday, a day after suffering its biggest single-day loss in three months. Strength in the greenback overseas and rising oil rates put pressure on the rupee.

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Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking Ltd, told CNBC-TV18.com, "We are yet to see the impact of cooling off commodity prices on our trade data. Besides, the strong advance witnessed in the dollar index from the key 105 mark owing to hawkish comments from a trio of Fed officials amid widespread inflationary pressures and rising friction between the US and China have again roiled the sentiments and raised the case for aggressive rate hikes by the US central bank ahead."

"Strong demand from oil importers and corporates for hedging their overseas loans at attractive levels for the Indian rupee also led to the recent downwards drift witnessed in the domestic currency," Sachdeva added.

The dollar index — which measures the US dollar against a basket of currencies — rose marginally.

Crude oil prices climbed up, reversing losses from the previous session, after the OPEC+ agreed to a small increase in its output target.

Brent crude futures jumped 5.8 percent to $102.4 a barrel and West Texas Intermediate (WTI) futures climbed 0.8 percent to $102.4 a barrel.

Indian equity benchmarks started the day in the green mirroring gains across global markets.

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First Published:Aug 4, 2022 9:57 AM IST