The rupee slipped 29 paise to 71.48 against the US dollar in early trade on Monday amid positive Asian equities and decline in crude oil prices. The domestic unit Friday weakened by 16 paise to close at 71.19 per dollar.
Rupee fell in the later half of the session on Friday primarily as global crude oil prices continued to rally after supply cuts led by OPEC supported prices, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).
OPEC issued a list of oil production cuts by its members and other major producers for six months starting on January 1 to boost confidence in its oil supply reduction pact. Last week, OPEC’s monthly report showed it had made a strong start in December before the pact went into effect, implementing the biggest month-on-month production drop in almost two years.
"Today, USD/INR pair is expected to quote in the range of 70.70 and 71.50," Somaiya added.
According to reports, foreign investors have pulled out more than Rs 4,000 crore from the Indian capital markets so far in January, highlighting their cautious stance towards the country.
In the equity market, benchmark indices Sensex and Nifty opened marginally higher on Monday.