Rupee opens 5 paise down at 68.59 against U.S. Dollar

The Rupee depreciated marginally by 5 paise to 68.59 against the U.S. Dollar in early trade on 16 July as the country’s exports entered the negative zone after a gap of eight months.

At the interbank Forex market, the Rupee opened weak at 68.59 registering a decline of 5 paise over its last close. The local currency however pared the initial loss and was trading at 68.55 at 09:45 a.m.

The Rupee had settled at 68.54 against the U.S. Dollar Monday.

Forex traders said weak trade data, foreign fund outflows and rising crude oil prices weighed on the domestic currency.

According to the government data, India’s exports entered negative zone after a gap of eight months recording a decline of 9.71% to $25.01 billion in June.

Imports also declined 9% to $40.29 billion in June mainly due to falling prices of petroleum products, leaving a trade deficit of $15.28 billion.

Notwithstanding the weak trade data, positive opening in domestic equities supported the local unit and restricted the downfall, traders said.

Brent crude futures, the global oil benchmark, rose 0.12% to $66.56 per barrel.

Meanwhile, foreign institutional investors (FIIs) pulled out ₹216.44 crore on a net basis on July 15, provisional data showed.

Domestic bourses opened on a positive note on July 16 with benchmark indices Sensex trading 109.86 points higher at 39,006.57 and Nifty up 31 points at 11,619.35.