Representative image of Indian Rupee and US Dollar
Credit: iStock Photo
Mumbai: The rupee depreciated 5 paise to 83.33 against the US dollar in early trade on Friday, tracking a strong greenback overseas and a positive trend in domestic equities.
However, elevated crude prices in international markets and unabated foreign capital outflows capped the gains in domestic unit, forex traders said.
At the interbank foreign exchange, the domestic unit opened weak at 83.30 against the dollar and then further slipped to 83.33, registering a fall of 5 paise over its previous close.
In the initial trade, the domestic unit was moving in a tight range of 83.35-83.30 against the American currency. In the previous session on Thursday, the rupee had settled at 83.28 against the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 105.54.
Brent crude futures, the global oil benchmark, rose 0.35 per cent to USD 89.32 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 103.64 points or 0.14 per cent higher at 74,443.08.
The broader NSE Nifty advanced 32.45 points or 0.14 per cent to 22,602.80. Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 2,823.33 crore, according to exchange data.