Rupee falls 16 paise to 90.11 against US dollar in early trade

The rupee depreciated 16 paise to 9011 against the US dollar in early trade on Monday weighed down by elevated crude oil prices and persistent foreign fund outflowsForex traders said strong dollar demand from corporates importers and foreign portfolio investors pressurised the rupeeAt the interbank foreign exchange the rupee opened at 9007 against the US dollar then dropped to 9011 down 16 paise from its previous closeOn Friday the rupee settled at 8995 against the US dollar after the Reserve Bank of India cut the key policy interest rate for the first time in six monthsForex traders said investors focus has now shifted to the Feds policy outcome on December 9iquest10 Markets are placing nearly a 90 per cent probability on a rate cut next weekMeanwhile India and the United States will commence threeday talks on the first phase of their proposed bilateral trade agreement here from December 10The US team is in India on 10th December and simultaneously the EU team is also in India to meet the Commerce Minister on trade negotiations and finalising an FTA We await for positive outcomes on both counts said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLPBhansali further noted that FPIs continue to remain sellers despite the India equities going up The dollar Index is range bound Asian currencies are range bound so there are no specific cues from any frontMeanwhile the dollar index which gauges the greenbacks strength against a basket of six currencies was trading 011 per cent lower at 9888 Brent crude the global oil benchmark was trading higher by 017 cent at USD 6385 per barrel in futures tradeOn the domestic equity market front the benchmark sensitive index Sensex declined 21573 points to 8574124 in early trade while the Nifty was down 6485 points to 2612160Foreign Institutional Investors sold equities worth Rs 43890 crore on Friday according to exchange dataThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever