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The rupee depreciated 10 paise to 81.69 against the U.S. dollar in early trade on Monday, weighed down by significant foreign fund outflows.
At the interbank foreign exchange, the domestic unit opened weak at 81.69 against the dollar, registering a decline of 10 paise over its last close.
In the previous session on Friday, the rupee settled at 81.59 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01% to 101.92.
Brent crude futures, the global oil benchmark, declined 0.17% to $86.51 per barrel.
The focus on the Union Budget and the U.S. Federal Reserve’s policy decision will dictate the course for the local unit on Monday, traders said.
“Asian and emerging market peers have started with gains and could aid investor sentiments. However, demand from importers and the Reserve Bank of India’s presence could cap gains,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
On the domestic macroeconomic front, India’s forex reserves increased by $1.727 billion to $573.727 billion in the week ended January 20, the RBI said on Friday. This is the second consecutive week of rise in the kitty.
In the domestic equity market, the 30-share BSE Sensex was trading 30.72 points or 0.05% higher at 59,361.62. The broader NSE Nifty advanced 17.55 points or 0.1% to 17,621.90.
Foreign Institutional Investors (FIIs) turned net sellers in the capital markets on Friday as they offloaded shares worth ₹5,977.86 crore, according to exchange data amid a slump in Indian equities due to Adani Group-led selloff on Friday.
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