Rupee Slips 15 Paise to 89.90 Against US Dollar in Early Trade

Foreign Fund Outflows and Weak Equity Cues Pressure Rupee​

The Indian rupee weakened by 15 paise to 89.90 against the US dollar in early trade on Wednesday, tracking continued foreign fund outflows and a subdued opening in domestic equity markets.

At the interbank foreign exchange market, the rupee opened at 89.89 against the dollar and slipped further to 89.90, compared with its previous close of 89.75. The local currency had ended the previous session higher by 23 paise.

Foreign portfolio investors have continued to reduce exposure to Indian equities over the past few months, which has remained a persistent drag on the rupee. Equity outflows have added to pressure from importer demand, while exporters have remained cautious in their dollar sales.

Global Cues and Commodity Trends​

The dollar index, which measures the strength of the US currency against a basket of six major currencies, was trading marginally higher by 0.04 per cent at 98.27.

In the commodities market, Brent crude, the global oil benchmark, was down 0.08 per cent at USD 61.30 per barrel in futures trade.

Equity Markets Open Higher Despite Currency Weakness​

On the domestic equity front, benchmark indices opened in positive territory. The Sensex rose 188.31 points to open at 84,863.39, while the Nifty gained 80.70 points to start the session at 26,009.55.

Meanwhile, foreign institutional investors sold equities worth Rs 3,844.02 crore in the previous session, as per exchange data, extending the recent trend of net outflows from the domestic market.