In early trading, the Indian rupee decreases 4 paise to 79.96 against the US dollar

In the first session on Wednesday, the rupee lost 4 paise to open at 79.96 against the US dollar as a result of strong dollar demand from oil importers and rising crude oil prices.

Significant dollar demand from oil importers, high crude oil prices, and worries over an expanding trade deficit, according to forex traders, dampened market morale.

The Indian rupee began trading at 79.91 against the US dollar on the interbank foreign exchange before losing 4 paise to quote at 79.96.

Following currency inflows and rumoured RBI intervention, the rupee strengthened on Tuesday from its record low of 80.05 to close 6 paise higher at 79.92 against the US dollar.

Asian currencies are all trading against the dollar, according to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors. Along with anxious importers, oil corporations are still purchasing US dollars, according to Bhansali.

The 30-share Sensex was up 637.17 points, or 1.16 percent, at 55,404.79 on the domestic equities market, while the larger NSE Nifty was up 188.45 points, or 1.15 percent, at 16,529.00.

The dollar index, a measure of the strength of the dollar versus a basket of six different currencies, was down 0.13 percent at 106.54. Benchmark Brent crude futures for world oil decreased by 0.39 percent to US$106.93 per barrel.

According to exchange data, foreign institutional investors continued to be net purchasers on Tuesday, buying shares worth Rs 976.40 crore.