Rupee slips 11 paise to 69.05 in early trade amid strengthening of dollar; easing crude prices back domestic currency

Mumbai: The rupee opened on a cautious note and fell 11 paise to 69.05 against the US dollar in early trade on  Tuesday amid strengthening of the greenback vis-a-vis other currencies overseas, even as crude oil prices eased.

Forex traders said rupee is expected to trade in a narrow range as market participants will keep a close watch on the Union Budget this week, that could trigger volatility in the local unit.

At the Interbank Foreign Exchange, the rupee opened at 69.02 then fell to 69.05 against the US dollar, showing a decline of 11 paise over its previous closing.

The Indian rupee on Monday had closed at 68.94 against the US dollar.

Traders said some easing in brent crude prices and foreign fund inflows supported the domestic currency and restricted the downfall.

Meanwhile, brent crude futures, the global oil benchmark, fell 0.22 percent to $64.92 per barrel.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 426.53 crore Monday, as per provisional data.

Domestic bourses opened on a cautious note Tuesday with benchmark indices Sensex trading 7.50 points up at 39,694.00 and Nifty up 3.75 points at 11,869.35.