Rupee slips 37 paise to 70.07 against US dollar in early trade

The rupee fell by 37 paise to 70.07 against the US dollar in early trade Friday amid strengthening of the US dollar against some currencies overseas and foreign fund outflows. Forex traders said besides increased demand of the US currency from importers, the dollar’s strength against some currencies overseas weighed on the rupee. The rupee opened lower at 69.93 against the dollar and dropped further to quote at 70.07, 37 paise down over its previous close. On Thursday, the domestic currency appreciated by 69 paise to close at 69.70 against the US dollar. Traders said a lower opening in the domestic equity market, rising crude prices and foreign fund outflows put additional pressure on the local unit.

Globally, Brent crude, the international benchmark, was trading 1.27 per cent higher at $55.04 per barrel. Foreign funds pulled out Rs 386.44 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 87.96 crore Thursday, provisional data showed.

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The 30-share index fell 31.70 points, or 0.09 per cent, to trade at 36,399.97. In a similar movement, the NSE Nifty was trading 12 points, or 0.11 per cent, lower at 10,939.70.