The rupee depreciated by 13 paise to settle at 73.05 (provisional) against the US dollar on Thursday, tracking muted domestic equities and a strengthening American currency.
At the interbank forex market, the rupee opened at 73.13 against the greenback and hit an intraday high of 73.04 and a low of 73.15. It finally closed at 73.05, lower by 13 paise over its last close.
On Wednesday, the rupee had ended at 72.92. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.08 per cent to 90.71. On the domestic equity market front, the BSE Sensex ended 535.57 points or 1.13 per cent lower at 46,874.36, while the broader NSE Nifty declined 149.95 points or 1.07 per cent to 13,817.55.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,688.22 crore on Wednesday, according to exchange data. Brent crude futures, the global oil benchmark, fell 0.22 per cent to $55.69 per barrel.
The domestic currency is likely to strengthen 1.3 per cent and average 73.5 against the US dollar in the financial year 2022-23 compared with an average level of 74.4 in the financial year 2021-22.