On April 30, the rupee had closed at 74.09 against the US dollar.

The Indian rupee fell 24 paise to 74.33 against the US dollar when trade opened on May 3, following weakness in domestic stocks and the strong US currency.

Forex traders said concerns about increasing cases of COVID-19 and outflows of foreign funds have also weighed on investor sentiment.

At the interbank exchange rate, the domestic unit opened lower at 74.25 against the dollar, lost ground to hit 74.33, registering a decline of 24 peas from its previous close.

On April 30, the rupee had closed at 74.09 against the US dollar.

Rupee opened on a week-long note on the strength of the global dollar and the weaker-than-expected performance of the BJP in state elections, particularly in Bengal, said Abhishek Goenka, founder and CEO of IFA Global.

Mr Goenka further stated that “it is likely that he will trade an intraday range of 74.15-74.45 with an upward bias.”

The main trigger point for the markets could be the CPI and IIP numbers this week, Reliance Securities said in a research note, adding that volumes could be low this week as Chinese investors and traders will be away from markets due to the Labor Day break May 3-5 this week.

The 30-stock Sensex BSE was trading 363.46 points or 0.75% lower at 48,418.90. Likewise, the larger NSE Nifty slipped 85.15 points or 0.58% to 14,545.95.

Daily cases of COVID-19 in India showed a slight decline with 3.68147 new coronavirus infections reported in one day, bringing the total of cases to 1.99,25,604, according to data from the Ministry of Health. Union updates May 3.

Foreign Institutional Investors (FIIs) remained net sellers in capital markets as they withdrew ₹ 3,465.07 crore on April 30, according to provisional data.

The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading up 0.06% to 91.33.

Futures contracts on Brent, the world’s benchmark for oil, fell 0.45% to $ 66.46 per barrel.