Rupee dips 36 paise against US dollar in early trade

PTI Mumbai, Maharashtra, India Oct 15, 2018, 10.04 AM(IST)

File photo. Photograph:( Reuters )

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A spurt in dollar demand from importers amid sustained foreign fund outflows weighed on the rupee.

The rupee dropped 36 paise to 73.93 against the US currency in early trade Monday, breaking its three-day recovery trend, as crude prices rose amid weak macro economic data.

Also Read: Rupee strengthens 38 paise against US dollar

A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee.

Dealers said, factors like the dollar's strength against some other currencies overseas and a volatile opening of the equity markets also impacted the domestic currency.

Industrial production slipped to a three-month low of 4.3 per cent in August and retail inflation rose marginally to 3.77 per cent in September, according to the data released by Central Statistics Office Friday.

On Friday, the rupee had ended 55 paise higher at 73.57 against the dollar, as global crude prices eased and domestic indices staged a smart rebound.

Foreign institutional investors (FIIs) sold shares to the tune of Rs 1,322 crore Friday, provisional data showed.

The benchmark BSE Sensex fell by 70.85 points today, or 0.20 per cent, to 34,662.73 in early trade after crossing the key 35,000-mark to hit a high of 35,008.65 at the outset.