The rupee opened lower on Friday, slipping seven paise to 89.97 against the US dollar amid continued foreign investor selling and a rise in global crude oil prices. Furthermore, US tariffs and muted domestic equity market sentiment drove foreign institutional investors to sell, placing additional pressure on the local currency. The rupee had opened at 88.88 against the dollar before sliding to 89.97, following a three-paise decline to 89.90 on Thursday, when sustained foreign fund outflows and a firm greenback weighed on the market. “There was huge volatility in the rupee market on Thursday as the RBI sold dollars at 89.99 and brought rupee up to 89.73 and then FPIs bought dollars. The RBI has been capping the dollar upside presently, creating huge oversold positions for itself which could keep the dollar well bid at lower levels as the RBI would try to square up positions,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP told PTI. Elsewhere, the dollar index, which tracks the greenback against six major currencies, held steady at 98.93. Brent crude futures rose 0.53% to $62.32 a barrel. Domestic equity markets mirrored the cautious mood. The Sensex fell 78.84 points to 84,102.12, while the Nifty declined 21.50 points to 25,850.85. Foreign institutional investors sold equities worth Rs 3,367.12 crore on Thursday, exchange data showed.
