MUMBAI: The rupee depreciated by 24 paise to 69.46 against the US dollar in early trade on Monday on increased demand for the US currency from importers and weak opening in domestic equities.
“The US President Donald Trump on Sunday threatened to raise tariffs on USD 200 billion worth of Chinese goods and this in turn impacted investor sentiment in the currency market”, Forex traders said.
The rupee opened weak at 69.38 at the interbank forex market and then fell further to 69.46, down 24 paise over its last close.
However, the local currency pared the initial loss and was trading at 69.41 at 0926 hrs.
On Friday, the rupee had strengthened by 15 paise to close at 69.22 against the US dollar.
“Strength in dollar against major rival currencies, foreign fund outflows and heavy selling in domestic equities also kept the pressure on the Indian rupee”, dealers said.
As per the provisional data, foreign institutional investors (FIIs) pulled out Rs 400.68 crore on a net basis on Friday.
Domestic bourses opened on a negative note on Monday with benchmark indices Sensex trading 362.11 points down at 38,601.15 and Nifty down 112.75 points at 11,599.50.
Brent crude futures, the global oil benchmark, fell 2.22 per cent to USD 69.28 per barrel.
With inputs from PTI