Rupee slips 10 paise to 68.54 in early trade ahead of key macro-economic data release; weak greenback supports local unit

Mumbai: The rupee opened on a cautious note and fell 10 paise to 68.54 against the US dollar in early trade on Friday ahead of the release of key macro-economic data. Forex traders said the rupee is trading in a narrow range ahead of the release of retail inflation and factory output data. Besides, the weakening of the greenback vis-a-vis other currencies overseas supported the local unit. However, rising crude oil prices, foreign fund outflows and cautious opening in domestic equities weighed on the domestic currency. [caption id=“attachment_5114261” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] At the Interbank Foreign Exchange, the rupee opened at 68.48 then fell to 68.54 against the US dollar, showing a decline of 10 paise over its previous closing. The Indian rupee Thursday had closed at 68.44 against the US dollar. Meanwhile, Brent crude futures, the global oil benchmark, rose 0.68 percent to $66.97 per barrel. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 316.86 crore Thursday, as per provisional data. Domestic bourses opened on a cautious note Friday with benchmark indices Sensex trading 24.07 points down at 38,799.04 and Nifty down 3.95 points at 11,578.95. On the global front, Federal Reserve Chairman Jerome Powell, has indicated that the central bank is prepared to cut interest rates to support the economy. “Uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook,” Powell said in his opening comments to the Senate Banking Committee on Thursday.