The rupee depreciated by 50 paise to 70.08 against the US dollar in early trade on Monday at the interbank foreign exchange amid strengthening of the US dollar against some currencies overseas. Forex traders said besides increased demand of the US currency from importers, the dollar’s strength against some currencies overseas weighed on the rupee but a higher opening of the domestic equity markets capped the losses.
The rupee opened lower at 69.87 against the dollar then dropped further to quote at 70.08, down 50 paise over its previous close.
The rupee had strengthened by 27 paise to close at a four-month high of 69.58 against the US currency on Friday.
The benchmark BSE Sensex opened over 250 points higher Monday on positive global cues after US President Donald Trump and his Chinese counterpart Xi Jinping ended the trade war and agreed to a truce.
The 30-share index was trading 132.25 points, or 0.37 per cent, higher at 36,326.55. In a similar movement, the NSE Nifty was trading 30.80 points, or 0.28 per cent, up at 10,907.55.
Forex traders said a rise in crude oil prices and foreign fund outflows also weighed on the domestic currency.
On a net basis, foreign funds sold shares worth Rs 332.62 crore, while DIIs purchased share to the tune of Rs 1,489.65 crore Friday, provisional data showed.
Globally, Brent crude, the international benchmark, was trading 4.78 per cent up at $62.30 per barrel.