Mumbai: The Indian rupee declined against the US dollar in early trade on Friday. As per forex traders, strengthening of the American currency and a negative trend in domestic equities dented investor sentiments. Forex traders said the ongoing uncertainty surrounding tariff imposition by the US has left financial markets in flux. Moreover, the tariff chaos has injected volatility and uncertainty into the US Dollar Index.
At the interbank foreign exchange, the Indian rupee opened at 87.32, then fell to 87.37 against the American currency, registering a decline of 19 paise over its previous close. On Thursday, the rupee settled almost flat with a marginal gain of 1 paisa at 87.18 against 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 107.35, higher by 0.10 per cent. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 556.56 crore in the Indian capital markets on net basis on Thursday.