The rupee dropped 36 paise to 73.93 against the U.S. currency in early trade on Monday, breaking its three-day recovery trend, as crude prices rose amid weak macro economic data.
A spurt in dollar demand from importers amid sustained foreign fund outflows also weighed on the rupee.
Dealers said, factors like the dollar’s strength against some other currencies overseas and a volatile opening of the equity markets also impacted the domestic currency.
ADVERTISEMENT
Industrial production slipped to a three-month low of 4.3% in August and retail inflation rose marginally to 3.77% in September, according to the data released by Central Statistics Office Friday.
Friday, the rupee had ended 55 paise higher at 73.57 against the dollar, as global crude prices eased and domestic indices staged a smart rebound.
Foreign institutional investors (FIIs) sold shares to tune of ₹1,322 crore on Friday, provisional data showed.
ADVERTISEMENT
The benchmark BSE Sensex fell by 70.85 points, or 0.20%, to 34,662.73 in early trade after crossing the key 35,000-mark to hit a high of 35,008.65 at the outset.