Mumbai | The rupee dropped by 19 paise to 73.35 against the US dollar in early trade on Thursday amid unabated foreign fund outflows.
Traders said increased demand for the US currency from importers and a lower opening of domestic equity market weighed on the local unit. After opening lower at 73.33, the rupee weakened further to quote at 73.35 against the dollar registering a fall of 19 paise. The dollar’s weakness against some currencies overseas and easing crude oil prices, however, restricted the rupee fall, they added.
Foreign investors pulled out Rs 2,040.54 crore from equity markets Wednesday, as per provisional data. On Wednesday, the rupee strengthened by 41 paise to close at more than three-week high of 73.16 against the US currency as global crude oil prices eased and domestic equity markets staged a smart rebound.
Meanwhile, the benchmark BSE Sensex plunged 301.49 points, or 0.89 percent, to 33,732.47 in the opening trade.