The rupee falls 4 paise to 71.78 against the USD in early trade
Mumbai, December 2 () The Indian rupee opened with a cautious note and fell 4 paise to 71.78 against the US dollar in the first operations on Monday, as economic growth concerns and rising crude oil prices maintained nervous to investors.
Forex traders said investors changed the cautious path after India's second quarter GDP growth fell to a minimum of more than 6 years of 4.5 percent.
India's GDP growth reached a minimum of more than six years of 4.5% in July-September 2019, mainly driven by the slowdown in manufacturing production and moderate activity in the agricultural sector, according to official data published on Friday .
In the interbank exchange rate, the rupee opened weakly at 71.78 against the US dollar, showing a decrease of 4 countries over its previous close.
The Indian rupee closed on Friday at 71.74 against the US dollar.
However, the rupee reduced initial losses and was trading at 71.69 against the US dollar at 0935 h.
The operators pointed out that the strengthening of the US dollar against other currencies abroad and the sustained outflows of foreign funds weighed on the national currency.
However, the positive opening in domestic equities supported the rupee and restricted the fall.
The national stock exchanges opened on a positive note on Monday with Sensex benchmarks quoting 142.28 points above 40,936.09 and Nifty higher by 28.10 points at 12,084.15.
Meanwhile, foreign institutional investors (FII) sold shares worth Rs 1,892.29 rupees on Friday, according to provisional exchange data.
The dollar index, which measures the strength of the dollar against a basket of six currencies, increased 0.04 percent to 98.31.
The crude oil benchmark, Brent Futures, rose 1.26 percent to USD 61.26 per barrel. The 10-year government bond yield was 6.46 percent in the morning trade. DRR DRR