Mumbai: The Indian rupee depreciated against the US dollar in early trade on Tuesday. As per forex traders, the Indian currency was weighed down by sustained foreign fund outflows and a negative trend in domestic equities.
At the interbank foreign exchange, the Indian rupee opened at 86.94 then fell further to 86.96 against the American currency, registering a decline of 8 paise over its previous close. On Monday, the rupee depreciated 17 paise to close at 86.88 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 at 106.90, higher by 0.31 per cent.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,937.83 crore in the Indian capital markets on net basis on Monday. India’s exports declined for the third month in a row in January, falling by 2.38 per cent year-on-year to $36.43 billion, while the trade deficit widened to $22.99 billion in the month. Imports rose by 10.28 per cent year-on-year to $59.42 billion in January due to an increase in gold shipments, according to the Commerce Ministry data.
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