Rupee slips 4 paise to 69.38 against U.S. Dollar in early trade

Forex traders said weak macro data foreign fund outflows and cautious opening in domestic equities added pressure to the domestic unit

The Rupee opened on a cautious note and fell 4 paise to 69.38 against the U.S. Dollar in early trade on June 13 amid strengthening of the greenback vis-a-vis other currencies overseas, even as crude oil prices eased.

Forex traders said weak macro data foreign fund outflows and cautious opening in domestic equities added pressure to the domestic unit.

At the Interbank Foreign Exchange, the Rupee opened on at 69.33 then fell to 69.38 against the U.S. Dollar, showing a decline of 4 paise over its previous closing.

The local unit, however, pared some losses and was quoted at 69.37 against the American currency at 1005 hrs.

Foreign institutional investors (FIIs) pulled out ₹1,050.43 crore on a net basis on June 12, as shown by provisional data.

Brent crude futures, the global oil benchmark, fell 0.13% to $59.89 per barrel.

On the domestic front, the Reserve Bank of India will infuse ₹15,000 crore into the financial system through bond purchases today.

“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of (six) government securities under Open Market Operations (OMO) for an aggregate amount of ₹150 billion on June 13, 2019, through multi-security auction using the multiple price method,” the central bank had said in a statement.

Retail inflation spiked to 3.05% in May from 2.99% in April, government data showed.

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