The Indian rupee on Friday depreciated further by 17 paise to close at 47.84/85 against the US currency following heavy capital outflows amid sluggish equity markets despite a weak dollar overseas.
Forex dealers said the fall in the rupee was mainly due to heavy selling by foreign funds in equity markets in the last two days. They pulled out over Rs 1,000 crore in the past two days, affecting rupee sentiment.
At the Interbank Foreign Exchange market, the rupee resumed sharply lower at 47.83/84 a dollar against the overnight close of 47.67/69 a dollar.
It moved in a range of 47.76 and 48.00 before concluding the day at 47.84/85, down by 0.36 per cent. Yesterday, it was down by 15 paise.
The Indian benchmark Sensex on Friday ended sharply down by 353.79 points or 2.28 per cent after tumbling 389.80 points or 2.45 per cent on August 6, 2009.
Global crude oil prices continued to trade above USD 71 a barrel in Asian trade today.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 47.86 and for the euro at Rs 68.69.
In cross-currency trade, the local unit improved further against the pound while declined against the euro and the Japanese yen.