Forex Market: Indian rupee falls against US dollar

Mumbai: The Indian rupee depreciated against the US dollar in early trade on Monday amid rising crude oil prices and outflow of foreign capital. The domestic currency, however, found support due to a softening American currency and positive equity market sentiment.

At the interbank foreign exchange market, the local currency opened at 83.39 and lost to trade at 83.43 against the US dollar in initial deals, registering a fall of 9 paise from its previous closing level. On Friday, the rupee settled 11 paise higher at 83.34 against the US dollar.

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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading at 105.30, lower by 0.23 per cent. Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Friday, as they offloaded shares worth Rs 23.09 crore.

India’s forex reserves jumped by USD 816 million to USD 653.711 billion in the week ended June 21. In the previous week, the overall reserves had dropped by USD 2.922 billion to USD 652.895 billion.