Mumbai: The rupee depreciated 11 paise to 70.60 against the US dollar in opening trade Wednesday on increased demand for the greenback from importers and banks. Forex dealers said, strengthening of the American currency in the overseas market weighed on the domestic currency.
However, fresh foreign fund inflows, easing crude prices and positive opening in domestic equities supported the rupee and restricted the fall. The rupee opened weak at 70.60 at the interbank forex market down 11 paise over its last close. The local currency however pared the initial loss and was trading ar 70.55.
The rupee Tuesday had strengthened by 43 paise to close at 70.49 against the US dollar. Foreign investors put in Rs 751.92 crore on a net basis in capital markets Tuesday, provisional exchange data showed.
Brent crude futures, the global oil benchmark, eased 0.76 per cent to USD 65.36 per barrel. Indian bourses furthered gains in early trade Wednesday, with benchmark indices Sensex and Nifty adding 157 points and 53 points, respectively, on sustained buying mainly in stocks of finance, metal and capital goods sectors.