Rupee began Friday on a weak note, falling 27 paise to extend its decline against the US dollar. In early trading, the currency touched 95.79 as high crude oil prices and foreign portfolio outflows continued to weigh it down.Rupee began the session at 95.70 against the dollar at the interbank foreign exchange market before weakening to 95.79. This marked a 27-paise fall from its previous close. Earlier on Thursday, the currency had already lost 44 paise, ending the session at 95.52.According to forex traders, the currency is facing pressure even as India has several factors supporting it. Record foreign exchange reserves, active intervention by the Reserve Bank and robust domestic growth are providing support, but rising global yields and crude prices above $108 are adding to pressure on the country’s import bill.“For the rupee, the pressure continues. It remains in an uptrend beyond 95 on the back of costly oil and foreign portfolio outflows, and we could see 96, with 95 now acting as support,” said Anindya Banerjee, head of commodity and currency research, Kotak Securities.Banerjee said rupee’s supporting factors include record foreign exchange reserves, the Reserve Bank’s active presence in the market and domestic growth of 7.8 per cent. However, he said the import bill is likely to remain the dominant force in the near term with crude above $100 and global yields rising.Investors are now expected to watch US and Indian inflation data for further direction.The dollar index was at 99.16, up 0.12 per cent. The index measures the strength of the US currency against a basket of six currencies.In the oil market, Brent crude futures were trading 0.76 per cent lower at $108.45 per barrel. The benchmark remained at elevated levels amid escalating US-Iran tensions and concerns over disruption to oil flows through the Strait of Hormuz.Pressure was also visible in the domestic stock market. Sensex fell 628.24 points to 74,257.69 in early trade, while Nifty declined 221.20 points to 23,255.10.Foreign Institutional Investors also remained sellers in the equity market. They offloaded shares worth Rs 438.24 crore on a net basis on Thursday, according to exchange data.
