Rupee falls 4 paise to ₹86.44 against US dollar in early trade

The rupee declined 4 paise to ₹86.44 against the US dollar in early trade on Thursday amid a firm American currency, rising crude oil prices and outflow of foreign funds.

However, positive domestic equity markets resisted a sharp fall in Indian currency, forex traders said.

At the interbank foreign exchange, the rupee opened at ₹86.42 and slipped further to ₹86.44 against the greenback in initial deals, trading 4 paise lower from its previous close.

The rupee settled with a gain of 13 paise at ₹86.40 against the dollar on Wednesday, a day after rebounding 17 paise from its lowest-ever level.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04% higher at 108.96.

Brent crude, the global oil benchmark, rose 0.37% to USD 82.33 per barrel in futures trade.

Analysts said concerns over geopolitical uncertainties are likely to add volatility in the dollar until the US gets a new administration under President Donald Trump.

In the domestic equity market, the 30-share BSE Sensex was trading 429.15 points, or 0.56%, higher at 77,153.23 points, while the Nifty was up 136.75 points, or 0.59%, at 23,349.95.

Foreign institutional investors (FIIs) offloaded equities worth ₹4,533.49 crore on Wednesday.