According to news agency PTI, the rupee depreciated 5 paise to an all-time low of 79.11 against the U.S. dollar in opening trade on Friday amid continued foreign capital outflows.
Domestic shares continued to be hit for the sixth consecutive session.
In the previous session, the rupee fell 3 paise against the dollar to close at an all-time low of 79.06.
Oil prices edged higher in early trade today after falling about 3% in the previous session. Brent crude futures rose 83 cents, or 0.8%, to $109.86 a barrel. U.S. West Texas Intermediate (WTI) crude futures for August delivery rose 70 cents, or 0.7%, to $106.46 a barrel.
Amit Pabari, MD, CR Forex, said: “Fundamental risk factors remain intact as India faces its biggest FII streak, rising oil prices, a hawkish Fed and a rising trade deficit.”
“Overall, with the RBI’s every move in the spotlight, bets for further rupee depreciation are stronger. We expect the rupee to trade between 78.80-79.20 in the near term before slowly and gradually falling further. ,” he added.
Meanwhile, Indian equity benchmarks opened lower in line with global markets.
Asian stocks got off to a shaky start today as investors grew increasingly nervous about the outlook for the global economy. Overnight, Wall Street recorded a 21% drop in the first six months of the year — the biggest drop since 1970.