After a three-day rise, the Indian rupee on Wednesday depreciated by 33 paise to 50.37 against the US currency in early trade on raised concerns of fresh capital outflows by funds from the domestic bourses.
Dollar’s strength against other Asian currencies also put pressure on the Indian rupee. The domestic unit was quoted lower at 50.37 a dollar, down by 33 paise over the previous close of 50.04/05, at the Interbank Foreign Exchange (Forex) market.
Forex dealers said increased demand for the dollar from refiners and importers and hopes of subdued opening on the stock markets in line with weakness on Asian bourses, mainly weighed down the rupee.
The rupee ended 30 paise higher at 50.04/05 against the USD on Monday on firm equity market. The forex and money markets remained closed yesterday on account of “Mahavir Jayanti”. Meanwhile, Japan’s Nikkei and Hong Kong’s Hang Seng were down by up to 4.2 per cent in early trade on Wednesday.