Rupee slips 17 paise to 74.75 against US dollar in early trade

The rupee depreciated 17 paise to 74.75 against the US dollar in opening trade on Friday tracking weakness in other Asian currencies.

Traders said the domestic unit is trading on a weak note as investors believe that the central bank’s bond buying plan could be bearish for the currency due to inflationary concerns.

Also read: India’s massive borrowing seen hindering RBI’s new bond purchases

At the interbank forex market, the domestic unit opened at 74.75 against the US dollar, registering a fall of 17 paise over its previous close.

On Thursday, the rupee had settled at 74.58 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09 per cent to 92.13.

The Indian central bank’s quantitative easing (QE) program could lead to inflationary concerns and could cap appreciation bias of the rupee, Reliance Securities said in a research note, adding that Reserve Bank of India (RBI) could be present this Thursday to curb volatility and could cap losses.

Meanwhile, Asian currencies were mostly weaker this Thursday and could cap gains for the local unit, the note added.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 96.27 points higher at 49,842.48, and the broader NSE Nifty advanced 23.45 points to 14,897.25.

Foreign institutional investors were net buyers in the capital market and purchased shares worth ₹110.85 crore on Thursday, according to exchange data.

Brent crude futures, the global oil benchmark, declined 0.09 per cent to $63.14 per barrel.

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