Rupee vs Dollar: Indian currency slips 54 paise, back to 71 per USD after six sessions

Rupee vs Dollar: The Indian currency slashed by 54 paise to hit the 71 per US dollar mark in the early trade on Thursday amid strengthening of American currency and weak opening in domestic equity markets. According to Forex traders, this strengthening of US dollar against other international currencies and foreign fund outflows weighed on the local unit. According to a report by news agency PTI, Indian currency opened weak at Rs 70.82 and later fell to 71 against the US dollar over its previous closing price. On Wednesday, the currency ticked higher by 3 paise to 70.46 amid weakness in the greenback and easing crude oil prices. The provisional data available with the Bombay Stock Exchange (BSE) showed that on a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 357.82 crore Wednesday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 791.59 crore. Meanwhile, key domestic indices Sensex and Nifty opened in red on Thursday amid weak global cues and after the Reserve Bank of India (RBI) refused to soften stance and continued to hold rates. Meanwhile, the 30-share Sensex was trading 347.53 points, or 0.97 per cent, lower at 35,536.88 at 1000 hrs. Even the international oil prices extended losses ahead of the meeting of OPEC and non-OPEC production companies. Brent crude, the international benchmark, was trading 0.83 per cent lower at USD 61.05 per barrel. The US West Texas Intermediate (WTI) crude futures were at $52.66 per barrel at 0140 GMT, down 23 cents, or 0.4 percent, from their last close, another news agency Reuters reported. The rupee will weaken over the next six months as uncertainty builds heading into national elections due in May, a Reuters poll showed. While a sharp drop in oil prices should help the slowing economy and the rupee, concerns will also persist over sluggish domestic demand which weighed more heavily on July-September growth than expected. (With input from agencies)