Forex traders said foreign fund outflows and rising crude oil prices kept pressure on the rupeeMumbai:The rupee declined by 19 paise to 69.45 against the US dollar in early trade on Thursday, ahead of the Reserve Bank of India's monetary policy decision.
Forex traders said foreign fund outflows and rising crude oil prices kept pressure on the rupee.
The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy resolution of the current financial year later in the day.The rupee opened weak at 69.41 at the interbank forex market and declined to 69.45, down 19 paise compared with the previous close.
The rupee had settled at 69.26 against the US dollar on Tuesday.Indian bonds and Forex markets were closed Wednesday on account of Id-Ul-Fitr.Forex traders said a cautious opening in domestic equities weighed on the local unit.Brent futures, the global benchmark for crude oil, rose 0.25 per cent to $60.78 per barrel.Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 416.08 crore on Tuesday, according to provisional data.Domestic stock markets started the session on a cautious note, with the SP BSE Sensex falling more than 100 points in intraday trade and the NSE Nifty index sliding below the 12,000 mark.
Weakness in financial and energy stocks dragged the markets lower.