Rupee slips 24 paise to 70.63 against dollar in early trade; fresh fund inflows, easing crude prices cap losses
Forex traders said strength in the US dollar against some currencies overseas weighed on the rupee
Mumbai: The rupee on Thursday depreciated by 24 paise to 70.63 in early trade on the forex market amid strengthening American currency and weak opening in domestic equities.
Forex traders said strength in the US dollar against some currencies overseas weighed on the local unit.
However, fresh foreign fund inflows and easing crude prices capped the losses for the domestic unit.
At the Interbank Foreign Exchange, the rupee opened on a weak note at 70.63 against the US dollar, showing a decline of 24 paise over it's previous closing.
On Wednesday, the rupee had settled 5 paise higher at 70.39 against the US dollar.
Foreign funds bought shares worth Rs 1,209.21 crore from the capital markets on a net basis Wednesday, while domestic institutional investors sold shares worth Rs 481.46 crore, provisional data showed.
The global benchmark, Brent crude oil was trading at $56.49 per barrel, lower by 1.31 percent.
Meanwhile, domestic equity market opened on a weaker note.
The 30-share BSE benchmark Sensex, was trading at 36,305.11, down 179.22 points in early trade. The wide-based Nifty was also trading lower by 51.95 points at 10,915.35.
After initial losses, BSE Sensex rose by 0.41 percent or 233.25 points to 57,340.40, while NSE Nifty 50 opened at 17,055.80 and rose by 0.08 percent, gaining 12.90 points to 17,039.35
The domestic market indices BSE Sensex and NSE Nifty were in freefall on the morning of Friday, 26 November
The rupee has been under pressure over the last few trading sessions, as the detection of a new coronavirus variant re-ignited growth concerns and hurt risk appetite