Mumbai: The Indian rupee depreciated against the US dollar in early trade on Tuesday. As per forex traders, the local currency was dragged down by a strong American currency and sustained outflow of foreign funds. The Indian currency, however, capped the fall on the back of some recovery in domestic equity markets and receding crude oil prices overseas.
At the interbank foreign exchange, the Indian rupee opened at 85.77, slipped to 85.80 before trading again at 85.75 against the US dollar in initial deals, 7 paise lower from its previous close. On Monday, the rupee settled 11 paise higher at 85.68 against the dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.09 per cent lower at 108.09.
Foreign institutional investors (FIIs) offloaded Rs 2,575.06 crore in the Indian capital markets on a net basis on Monday. The seasonally adjusted HSBC India Services Business Activity Index, rose from 58.4 in November to 59.3 in December.
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