The Indian rupee opened lower against the dollar on Thursday, building on Wednesday's decline amid concerns over the nation's record trade deficit.

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The rupee was trading at 79.34 per U.S. dollar, compared with the previous close of 79.16.

A trader at a state-run bank told Reuters that Thursday's decline was primarily on worries around how India would fund its record trade deficit at a time when the U.S Federal Reserve is increasing interest rates.