The Indian rupee fell in the early session on Friday following the fears of foreign investors’ exit mounts on the domestic currency. The rupee tripped as much as 17 paise against US dollars to 65.11 a piece at the interbank foreign exchange market. Domestic currency opened 13 paise lower at 65.07 in the morning session. It seems that the demand for US dollar may have increased from the foreign investors led by the weak Indian stock markets. Later in the day, after shedding 17 paise, the Indian currency recovered slightly but was still trading down by 8 paise at 65.03 per US dollar.
The dollar index, which gauges the currency against a basket of six major rivals, inched up 0.1% to 94.493 after skidding 0.36% in the previous session, Reuters reported. However, the dollar trading weak against some currencies overseas on likely delay in the implementation of a major corporate tax cut limited the rupee losses, traders said. Yesterday, the rupee closed marginally higher, up 2 paise at 64.94 against US dollar.
Sensex and Nifty opened marginally lower on Friday as most of the Asian shares slipped in the early trade today on uncertainty about US tax reforms. BSE Sensex fell 15.18 points to open at 33,235.75 whereas NSE Nifty lost 4.6 points to start at 10,304.35. Investors are keenly awaiting the second-quarter earnings of biggies such as State Bank of India and Bharat Petroleum Corporation which are likely to guide the markets ahead.
Within minutes of trading, the key indices extended the losses and dropped further with the benchmark Sensex losing as much as 113.5 points to hit the day’s low of 33,137.43 whereas the broader Nifty tripped 38.95 points to mark the day’s low of 10,270. US stocks ended lower Thursday as investors turned their attention to a US Senate Republican plan that would delay expected corporate tax cuts.