Rupee sheds 5 paise against dollar in early trade

The Indian rupee fell marginally by 5 paise against the US currency in early trade in line with weak trend in Asian equities raising concerns of capital outflows by funds from the domestic stock markets.

The Indian rupee fell marginally by 5 paise against the US currency in early trade on Monday in line with weak trend in Asian equities raising concerns of capital outflows by funds from the domestic stock markets.

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At the Interbank Foreign Exchange (Forex) market, the domestic currency was quoted at 48.73 against the dollar, a fall of 5 paise over the previous close of 48.67/68 a dollar.

The domestic currency appreciated by 17 paise at 48.67/68 against the dollar on Friday.

Dealers said concerns of capital outflows by funds on fears that the domestic stock markets may open a shade lower, in tandem with other Asian bourses, mainly put pressure on the Indian rupee.

They said movements were restricted as traders preferred to keep their commitments at a low ebb ahead of an interim budget, which is expected to be presented in parliament at 11.00 am

Meanwhile, Hong Kong's Hang Seng fell by 1.92 per cent, Japan's Nikkei shed 0.61 per cent, while Singapore's Strait Times moved down by 0.44 per cent in early trade on Monday.