The Indian rupee opened on a weak note and fell 11 paise to 71.73 against the US dollar in early trade on Friday, as investors traded the cautious path ahead of the release of GDP data, reports BSS/PTI.
Forex traders said rupee is trading in a narrow range as investors are also awaiting clarity on the US-China trade front. At the interbank foreign exchange, the rupee opened at 71.63 then fell to 71.73 against the US dollar, showing a decline of 11 paise over its previous closing.
The Indian rupee on Thursday had closed at 71.62 against the US dollar. The second-quarter GDP number is scheduled to be announced on Friday. India’s economy grew at 5 per cent in the first quarter of 2019-20 — the slowest pace in over six years.
Traders said muted opening in domestic equities dragged the local unit, while, easing crude oil prices and sustained foreign fund inflows supported the rupee and restricted the fall. Meanwhile, brent crude futures, the global oil benchmark, fell 0.41 per cent to USD 63.61 per barrel. Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 1,008.89 crore on Thursday, as per provisional data. Domestic bourses opened on a cautious note on Friday with benchmark indices Sensex trading 138.95 points down at 40,991.22 and Nifty lower by 41 points at 12,110.15.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 98.32.
The 10-year government bond yield was at 6.47 per cent in morning trade.