Rupee at 71: Currency falls 59 paise in early trade on increased demand for US dollar

Mumbai: The rupee depreciated 59 paise to 71.40 against the US dollar in early trade Monday at the interbank foreign exchange amid strengthening US dollar against some currencies overseas. Forex traders said besides increased demand of the US currency from importers, the dollar’s strength against some currencies overseas weighed on the rupee. [caption id=“attachment_5305381” align=“alignleft” width=“380”] Representational image. Reuters[/caption] The rupee opened lower at 71.28 against the dollar and dropped further to 71.41, 59 paise down over its previous close. On Friday, the domestic currency recuperated by 8 paise to close at 70.82 against the US dollar. Traders said a lower opening in domestic equity market, rising crude prices and foreign fund outflows put additional pressure on the local unit. The 30-share BSE Sensex plummeted 551.74 points, or 1.55 percent, to 35,121.51 in opening session. Global crude oil prices rose after OPEC members and 10 other oil producing nations agreed on Friday to cut output by 1.2 million barrels a day in a bid to boost prices. Energy ministers reached the deal, which takes effect from 1 January but has already sent prices surging on oil markets, after two days of talks at OPEC headquarters in Vienna. Brent crude, the international benchmark, was trading 0.68 percent up at $62.09 per barrel. Meanwhile, foreign funds pulled out Rs 817.40 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 242.56 crore Friday, provisional data showed.