Rupee Opens Lower Against US Dollar

An Indian one rupee coin is seen in this picture illustration taken in Mumbai April 30, 2012. The Reserve Bank of India's battle to contain a falling rupee just got tougher. The current account deficit is widening and a weak global investment climate coupled with policy paralysis in New Delhi, sticky inflation and slowing growth have increased the aversion of foreign investors to India, pushing the capital account into the red. Last week's move by rating agency Standard & Poor's to cut the country's credit rating outlook to "negative" has complicated matters further for the RBI, which has few options other than intervention and tinkering with rules on export credit to encourage inflows, RBI officials say. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS)

ECONOMY

The rupee today opened 8 paise lower at 71.31 against the US dollar amid rise in crude oil prices.

The domestic unit on Friday slipped by 7 paise to close at 71.23, pressured by heavy foreign capital outflows and firming oil prices.

This was the third straight session of loss for the domestic currency. On a weekly-basis, the rupee registered a loss of 8 paise.

Among the global factors, China-US trade talks and crude oil prices are likely to influence forex market sentiment.

Moreover, market participants will also keep an eye on the Fed minutes to gauge a view for the greenback.