Rupee slips 6 paise to 81.77 against US dollar

The rupee depreciated 6 paise to 81.77 against the US dollar in early trade on Monday, tracking a lacklustre trend in domestic equity markets and a firm American currency overseas.

Lower crude prices on the global market and recent foreign money inflows, according to FX dealers, limited the rupee's decline.

At the interbank foreign exchange, the domestic unit opened weak at 81.81 against the dollar, then gained some ground to quote 81.77, registering a decline of 6 paise over its previous close.

In the previous session on Friday, the rupee weakened by just one paisa to end at 81.71 against the dollar.

TThe dollar index, which measures how strong the dollar is relative to a basket of six different currencies, increased 0.41 percent to 106.39.

Brent crude futures, the global oil benchmark, declined 2.58 percent to USD 81.47 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 27.97 points or 0.04 percent lower at 62,265.67. Similarly, the broader NSE Nifty fell 12.45 points or 0.07 percent to 18,500.30.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth Rs 369.08 crore, according to exchange data.

Foreign portfolio investors have rediscovered their liking for Indian equities, making a net investment of Rs 31,630 crore in November in hopes of an end to the aggressive rate hikes and positivity about overall macroeconomic trends.

With inputs from Agencies.