The rupee depreciated 7 paise to 79.92 against the US dollar in opening trade on Friday tracking the strength of the dollar in the overseas market and firm crude oil prices.

At the interbank foreign exchange, the rupee opened at 79.90 against the US dollar, then fell to 79.92 against the greenback, registering a decline of 7 paise over the last close.

On Thursday, the rupee recovered from its all-time low of 80.06 to close 20 paise higher at 79.85 against the US dollar following overall weakness in crude oil prices and fresh foreign fund inflows.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was up 0.01 per cent at 106.92.

Global oil benchmark Brent crude futures advanced 1 per cent to $104.90 per barrel.

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Foreign institutional investors remained net buyers in the capital market on Thursday as they purchased shares worth ₹1,799.32 crore, as per exchange data.

ECB hikes rates by 50 bps

The rupee opened lower as the European Central Bank (ECB) hiked rates by 50 basis points on Thursday and was ready for more to check inflation, said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Bhansali further said that the market is now waiting for the US FED on July 27 as the RBI postpones its meeting in August by one day.

The RBI has postponed the meeting of its interest rate setting Monetary Policy Committee by a day to August 3 due to administrative exigencies.

The RBI said the decision of the MPC will be known on August 5 as against the earlier schedule of August 4.

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