Rupee slips 33 paise to 71.94 against US dollar in early trade

The Indian rupee opened on a weak note and declined by 33 paise against the US dollar in opening trade on Friday, tracking heavy selling in domestic equities and sustained foreign fund outflows.

Forex traders said market participants were cautious after the benchmark 30-share sensitive index, Sensex, plummeted 1,083.85 points to 38,661.81 in opening session amid global selloff.

At the interbank foreign exchange the rupee opened at 71.90 then lost further ground and touched a low of 71.94 against the American currency, registering a fall of 33 paise over its previous close.

The domestic unit had settled at 71.61 against the US dollar on Thursday.

Moreover, investor sentiment remained fragile amid sustained foreign fund outflows and concerns over the impact of corona virus outbreak on the global economy, traders said.

China reported 44 more deaths from the novel coronavirus epidemic on Friday and 327 fresh cases. The death toll now stands at 2,788 in mainland China, according to the National Health Commission.

Besides, market participants will be keeping an eye on third quarter GDP number scheduled to be released later in the day.

Domestic bourses opened on a negative note on Friday, with benchmark indices Sensex trading 1,133.63 points lower at 38,612.03 and wide-based Nifty was down 339.90 points at 11,293.40.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,127.36 crore on Thursday, according to provisional exchange data.

Meanwhile, easing crude oil prices and weakening of the American currency in the overseas market supported the rupee and restricted the downfall to some extent.

Brent crude futures the global oil benchmark, fell 2.24 per cent to trade at USD 51.01 per barrel.