Rupee falls 9 paise to 79.71 against US dollar in early trade

New Delhi: The rupee depreciated 9 paise to 79.71 against the US dollar in opening trade on Friday, tracking the strength of the American currency in the overseas market and rising crude oil prices.

At the interbank foreign exchange, the rupee opened at 79.67 against the US dollar and lost further ground to 79.71, registering a decline of 9 paise over the last close.

On Thursday, the rupee depreciated by 37 paise to close at 79.62 against the US dollar.

According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the Indian rupee depreciated on Thursday, despite a fall in the dollar index and a rise in Asian currencies, amid heavy buying of the US dollar by the government, defence and oil companies.

"The demand may continue on Friday due to holidays in the next week. The range for the day is between 79.40 to 79.80," Bhansali said, adding that oil prices, however, are hovering near USD 100 per barrel, which is a matter of concern for the rupee and current account deficit (CAD).

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.11 percent to 105.20.

Meanwhile, global oil benchmark Brent crude futures declined 0.48 percent to USD 99.12 per barrel.

On the domestic equity market front, the 30-share Sensex was trading 189.59 points or 0.32 percent lower at 59,143.01 points, while the broader NSE Nifty was down 42.75 points or 0.24 percent to 17,616.25.

Foreign institutional investors remained net buyers in the capital market on Thursday as they purchased shares worth Rs 2,298.08 crore, as per exchange data.

(With PTI inputs)

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)