MUMBAI: The rupee depreciated by 25 paise to 71.36 against the US dollar in early trade on Wednesday amid strengthening of the American currency and rising crude prices.
On Tuesday, the rupee had settled 1 paise lower at 71.11 against the US dollar.
“Strengthening of the US dollar against some currencies overseas and sustained foreign fund outflows weighed on the local unit”, Forex traders said.
However, fresh foreign fund inflows and positive opening in domestic equities capped the losses for the domestic unit.
At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.34 then fell further to 71.36 against the US dollar, showing a decline of 25 paise over its previous closing.
Foreign funds sold shares worth Rs 354.36 crore from the capital markets on a net basis on Tuesday.
Meanwhile, domestic institutional investors bought shares worth Rs 81.27 crore, provisional data showed.
The global benchmark, Brent crude oil was trading at USD 61.49 per barrel, higher by 0.28 per cent.
Meanwhile, the domestic equity market opened on a higher note. The 30-share BSE benchmark Sensex was trading at 35,775.46, up 155.10 points in early trade.
The wide-based Nifty was also trading up by 37.70 points at 10,689.90.
With inputs from PTI