India News | Rupee Falls 1 Paisa to 85.87 Against US Dollar in Early Trade

Mumbai, Jan 10 (PTI) The rupee dipped 1 paisa to 85.87 against the US dollar in early trade on Friday due to a firm American currency and massive outflow of foreign capital.

Higher crude oil prices overseas also weighed on the Indian currency though it found some support tracking positive cues from domestic equity markets, forex traders said.

Also Read | 2024, Earth's Hottest Year on Record With Jump So Big It Breached Key Threshold.

At the same time, they said, the dollar strengthened on increased demand amid the anticipation of restrictive trade measures by the new US administration under President Donald Trump after January 20.

At the interbank foreign exchange, the rupee opened at 85.88 and moved up a tad to 85.87 against the greenback in initial deals, trading with a loss of 1 paisa from its previous close.

Also Read | AMU Bomb Threat: Aligarh Muslim University Receives Email Threatening Bomb Blast if INR 2 Lakh Ransom Not Paid, UP Police Begin Investigation.

On Thursday, the rupee settled with a gain of 5 paise at 85.86 against the US dollar, recovering from the steep decline of 17 paise in the preceding session.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent higher at 109.03. The 10-year US bond yields also rose to 4.68 per cent.

Brent crude, the global oil benchmark, climbed 0.31 per cent to USD 77.16 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex was trading 253.40 points, or 0.33 per cent, higher at 77,873.61 points, while the Nifty was up 62.60 points, or 0.27 per cent, at 23,589.10 points.

Foreign institutional investors (FIIs) offloaded Rs 7,170.87 crore in the capital markets on a net basis on Thursday, according to exchange data.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)