Forex traders said strong US job data and rising crude oil prices in overseas market added pressure to the domestic unit
The rupee depreciated by 37 paise to 69.60 against the US dollar in early trade Monday owing to increased demand for the greenback from importers and banks. At the Interbank Foreign Exchange, the rupee opened on a weak note at 69.40 then fell further to 69.60 against the US dollar, showing a decline of 37 paise over its previous closing.
The local unit, however, pared some losses and was quoted at 69.50 against the American currency at 0933 hrs. The rupee skidded 6 paise to finish at 69.23 per US dollar Friday.
Forex traders said strong US job data and rising crude oil prices in overseas market added pressure to the domestic unit.
However, foreign fund inflows and higher opening in domestic equity market restricted the fall in the local unit.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 797.90 crore Friday, as per the provisional data. Brent crude futures, the global oil benchmark, rose 0.51 per cent to USD 70.70 per barrel.
Meanwhile, domestic bourses opened on a bullish note Monday. The BSE gauge Sensex was trading above crucial 39,000-level and the NSE Nifty was heading towards 11,700-mark in early trade on Monday, led by gains in metal, IT and capital goods stocks tracking robust Asian cues.