The Indian rupee today depreciated by 10 paise to 47.06 against the US dollar in early trade largely on fears of fresh capital outflows by foreign funds as market is expected to open weak in line with bearish trend in Asian equity markets.
At the Interbank Foreign Exchange (Forex) market, the domestic unit traded 10 paise down at 47.06 a dollar. The rupee ended 24 paise higher at 46.96/97 against the dollar in the previous session on Friday. The forex market remained closed yesterday on account of “Guru Nanak Jayanti“.
Dealers said the domestic currency came under pressure mainly because of fear of capital outflows by foreign funds as market is expected to open lower in tandem with other Asian markets that were trading in negative zone.
However, the dollar’s weakness against some other international currencies capped rupee’s losses.