The rupee fell 2 ticks to trade at 84.49 against the US dollar in early trade on Friday eased by significant foreign currency outflows and month-end dollar demand from importers.
Forex dealers say the rupee remains in a weak position due to demand for the dollar from importers and foreign banks.
In the interbank foreign exchange, the rupee opened at 84.49 against the greenback, recording a fall of 2 paise over its previous close.
On Thursday, the rupee depreciated by 7 points to close at 84.47 against the US dollar.
As FPIs sold Rs 11,000 crore of stocks on Thursday the Indian rupee remained on the selling side against the US dollar which rose to a high of 84.51 before closing at 84.4850 with the Reserve Bank of India (RBI) guarding against any further fall of 84.50 currently, Anil Kumar Bhansali, Chief Treasurer and Managing Director of Finrex Treasury Advisors LLP said.
“Good month-end demand for the US dollar and FPIs buying it keeps the bid up to 84.50. Expect the buying to continue on Friday,” Bhansali added.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.18 percent lower at 105.85.
Brent crude, the global oil benchmark, rose 0.14 percent to USD 73.38 per barrel in futures trading.
In the domestic equity market, the 30-share BSE Sensex rose 396.99 points or 0.50 percent to 79,440.73 in morning trade, while the Nifty rose 128.00 points or 0.54 percent to 24,042.15 points.
Foreign Institutional Investors (FIIs) withdrew Rs 11,756.25 crore from capital markets on a net basis on Thursday, according to exchange data.
