Mumbai, Aug 4: The rupee depreciated 11 paise to 87.29 against the US dollar in early trade on Monday, weighed down by sustained foreign fund outflows and concerns over trade tariffs.
Forex traders said the weakness in the dollar index and easing crude oil prices supported the rupee at lower levels.
At the interbank foreign exchange market, the rupee opened at 87.21 and fell to an early low of 87.29 against the American currency, registering a decline of 11 paise over its previous close.
On Friday, the rupee closed at 87.18 against the US dollar.
“Indian Rupee opened at 87.20 level this morning after the fall in Dollar index and is expected to be in the range of 87- 87.50,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Trump also outlined steep duties against 70 countries, raising uncertainty over trade tariffs, Bhansali said.
Meanwhile, Brent crude prices fell 0.26 per cent to USD 69.49 per barrel in futures trade, as OPEC+ agreed for a production hike in September this year, while concerns over a cooling US economy and trade tariffs also weighed.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.40 per cent to 98.74.
Meanwhile, the US FED Governor resigned, opening the door for US President Donald Trump to make an imprint on the Central Bank much earlier than anticipated.
The US Treasury yields also fell as traders heavily scaled up bets of a FED rate cut in September.
In the domestic equity market, Sensex advanced 262.08 points or 0.33 per cent to 80,861.99, while Nifty rose 98.50 points or 0.4 per cent to 24,663.85.
Foreign institutional investors (FIIs) offloaded equities worth Rs 3,366.40 crore on a net basis on Friday, according to exchange data. (PTI)
