The US dollar index was down 0.17% at 101.96. (file)
Mumbai:
The rupee depreciated 26 paise to 81.68 against the US dollar in early trade on Tuesday due to rising crude oil prices and foreign exchange outflow.
Early gains in domestic equities and a weaker dollar against global currencies, however, limited the rupee’s losses.
The local unit opened a dollar lower at 81.48 against the previous close of 81.42. It moved in the range of 81.48 to 81.68 in morning deals.
At the interbank foreign exchange, the rupee was trading at 81.68 against a dollar at 0925 hours.
Forex dealers said outflow of foreign currency from the capital market is putting pressure on the local unit. He said that firmer crude oil prices are also weighing on the rupee sentiment.
International oil price benchmark Brent crude rose 0.02 per cent to $88.21 a barrel in Asian trade on hopes of improving demand from China.
The US dollar index, which gauges the greenback’s strength against six world currencies, was down 0.17 per cent at 101.96.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday, selling shares worth Rs 219.87 crore, according to exchange data.
Foreign investors have pulled out a net Rs 15,236 crore so far this month due to attractive Chinese markets and concerns that the US economy may enter recession.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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