Rupee slips 21 paise to 71.09 against dollar in early trade; rising demand for dollar weighs on domestic currency

  • Forex traders said rising demand for the US dollar vis-a-vis other currencies overseas also weighed on the domestic currency

  • The rupee had settled at 70.88 against the US dollar on Friday

  • Brent crude futures, the global oil benchmark, eased 0.27% to $58.21 per barrel

Mumbai: The rupee opened on a weak note and declined by 21 paise to 71.09 against the US dollar in opening trade on Monday, as sustained foreign fund outflows weighed on investor community.

Forex traders said rising demand for the US dollar vis-a-vis other currencies overseas also weighed on the domestic currency.

The rupee opened weak at 71.00 at the interbank forex market and then fell further to 71.09, down 21 paise over its last close.

The rupee had settled at 70.88 against the US dollar on Friday.

 Rupee slips 21 paise to 71.09 against dollar in early trade; rising demand for dollar weighs on domestic currency

Representational image. Reuters.

However, easing crude oil prices supported the rupee and restricted the downfall.

Brent crude futures, the global oil benchmark, eased 0.27 percent to $58.21 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 682.93 crore on Friday, as per provisional data.

On the domestic market front, benchmark indices Sensex was trading 220.22 points higher at 37,893.53 and Nifty up 51.50 points at 11,226.25.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.03 percent to 98.83.

The 10-year government bond yield was at 6.68 percent in morning trade.

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Updated Date: Oct 07, 2019 10:36:08 IST