Forex traders said strengthening of the US dollar against some currencies overseas and sustained foreign fund outflows weighed on the local unit
The rupee depreciated by 25 paise to 71.36 against the US dollar in early trade Wednesday amid strengthening of the American currency and rising crude prices.
Forex traders said strengthening of the US dollar against some currencies overseas and sustained foreign fund outflows weighed on the local unit.
However, fresh foreign fund inflows and positive opening in domestic equities capped the losses for the domestic unit.
At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.34 then fell further to 71.36 against the US dollar, showing a decline of 25 paise over its previous closing.
On Tuesday, the rupee had settled 1 paise lower at 71.11 against the US dollar.
Foreign funds sold shares worth ₹ 354.36 crore from the capital markets on a net basis on Tuesday, while domestic institutional investors bought shares worth ₹ 81.27 crore, provisional data showed.
The global benchmark, brent crude oil was trading at $ 61.49 per barrel, higher by 0.28 per cent.
Meanwhile, domestic equity market opened on a higher note. The 30-share BSE benchmark Sensex, was trading at 35,775.46 , up 155.10 points in early trade. The wide-based Nifty was also trading up by 37.70 points at 10,689.90.
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