Rupee slips 11 paise to 76.50 against US dollar in early trade

The Indian rupee fell 11 paise to 76.50 against the US dollar in opening trade on Monday, amid strengthening of the American currency overseas and sharp rise in coronavirus cases in the country.

Forex traders said rupee is trading in a narrow range as positive domestic equities is supporting the local unit, while strengthening of the US dollar is weighing on the rupee.

The rupee opened weak at 76.43 at the interbank forex market and then fell further to 76.50, down 11 paise over its last close.

The rupee had settled at 76.39 against the US dollar on Friday.

Forex traders said market participants are concerned that the sharp rise in coronavirus cases, could weigh on the economy.

The number of cases around the world linked to the new coronavirus has crossed over 24 lakh. In India, more than 17,000 coronavirus cases have been reported so far.

Brent crude futures, the global oil benchmark, fell 1.35 per cent to USD 27.70 per barrel.

Foreign institutional investors (FIIs) were net sellers in the capital markets, as they sold shares worth Rs 1,391.98 crore on Friday, as per provisional data.

Domestic bourses were trading on a positive note with benchmark indices Sensex trading 104.66 points up at 31,693.38 and Nifty higher by 36.50 points at 9,303.25.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.06 per cent to 99.84.