Rupee opens 16 paise lower against US dollar amid weak global cues

The rupee on Wednesday opened 16 paise lower at 71.18 against the US dollar. The domestic unit on Monday depreciated by 14 paise to close at 71.02 as profit booking in domestic equities and unabated foreign fund outflows kept investors edgy.

"Indian rupee weakened along with other emerging Asian currencies against the US dollar as fresh doubts over US-China trade talks resurfaced after a report said that Beijing may be reluctant on agreeing to a broad deal," VK Sharma, Head - PCG & Capital Market Strategy, HDFC securities, had said on Monday.

Foreign institutional investors (FIIs) remained net sellers in equities as they offloaded shares worth Rs 494.21 crore on a net basis, according to provisional exchange data. On Friday, FPIs had sold equities worth Rs 682.93 crore on net basis.

The forex market was closed on Tuesday on account of Dussehra.

On the global front, Asian stocks fell the most in a week on Wednesday as the United States and China’s broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.44 per cent. Chinese shares fell 0.47 per cent after briefly touching a five-week low. Australian shares were down 0.76 per cent, said a Reuters report.

In commodities, oil prices declined for third straight day. Brent crude futures fell 27 cents, or 0.5 per cent, to $57.97 a barrel by 07:18 am, while US West Texas Intermediate crude was at $52.38, down 25 cents or 0.5 per cent, the report added.

In currencies, The dollar index was little changed at 99.091. The euro traded at $1.0965, and the yen fell slightly to 107.18 per dollar.