Mumbai, October 18 – The Indian rupee slipped by 1 paisa to 84.07 against the US dollar in early trading on Friday. This decline occurred despite a weakening American currency, as negative sentiment in domestic equity markets and rising crude oil prices weighed on the local unit.
Forex traders noted that continued outflows of foreign funds also contributed to the rupee’s decline. The rupee opened flat at 84.06 against the dollar in the interbank foreign exchange market but fell to 84.07, marking a 1 paisa drop from the previous close.
On Thursday, the rupee weakened by 4 paise, closing at 84.06 against the greenback.
Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six currencies, decreased by 0.11 percent to 103.53 points. This decline was attributed to indications from the Chinese central bank of a potential reduction in the reserve ratio for lenders by the end of the year, which could boost the country’s economy.
In commodity markets, Brent crude, the international benchmark, rose by 0.21 percent to USD 74.61 per barrel in futures trading.
On the domestic equity front, the Sensex dropped 372.10 points, or 0.46 percent, to 80,634.51 points, while the Nifty fell by 116.70 points, or 0.47 percent, to 24,633.15 points.
Additionally, foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth ₹7,421.40 crore, according to exchange data.
