The rupee on Thursday fell to a 16-month low of 75.60 against the US dollar on unabated outflow of foreign funds amid rising concerns over the Omicron virus.
The rupee fell by 8 paise to a new 16-month low of 75.68 in early trade on Friday due to continuous foreign investment and losses in the stock market.
At the interbank forex market, the rupee opened at 75.65 against its previous close of 75.60 and fell by 8 paise to as low as 75.68 in morning deals.
The rupee on Thursday fell to a 16-month low of 75.60 against the US dollar on unabated outflow of foreign funds amid growing concerns over the Omicron virus and interest rate hikes by the US Federal Reserve to check inflation.
US consumer inflation data for November will be released later on Friday, with experts expecting a further rise in the Consumer Price Index (CPI). Retail inflation rose to 6.2% in October, the fastest increase in 31 years.
Any increase in inflation would be seen as a case for tightening monetary policy by the US Federal Reserve, which could lead to an outflow of funds from emerging markets and riskier assets.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, closed down 0.09% at 96.18 in early trade.
Oil benchmark Brent crude was trading marginally higher at $74.38 a barrel, while oil for the Indian basket was higher at $74.28 a barrel.
On the equity front, the 30-share index fell 186.36 points, or 0.32%, to 58,620.77 in early trade. Similarly, Nifty slipped 46.65 points or 0.27% to end at 17,470.20.
Foreign investors pulled out ₹1,585.55 crore on a net basis from Indian equities on Thursday, according to exchange data.
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