Rupee falls 20 paise against US dollar

Mumbai: The rupee Thursday depreciated 20 paise to 71.76 in early trade at the forex market ahead of the Reserve Bank of India's interest rate decision.

The domestic currency has been trading in a narrow range in the last two trading sessions as investors were cautious ahead RBI's Monetary Policy Committee outcome scheduled to be announced later in the day.

Forex traders said positive opening in domestic equities, fresh foreign fund inflows and easing crude prices, however, capped the losses for the domestic unit.

At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.73 then fell further to 71.76 against the US dollar, showing a decline of 20 paise over



its previous closing.

On Wednesday, the rupee had settled 1 paise higher at 71.56 against the US dollar.

Foreign funds purchased shares worth Rs 694.97 crore on a net basis, and domestic institutional investors bought shares worth Rs 525.26 crore Wednesday, provisional data showed.

The global benchmark, brent crude oil was trading at USD 62.46 per barrel, lower by 0.32 per cent.