New Delhi, 13 November (H.S.): The Indian rupee opened sharply weaker against the US dollar in the foreign exchange market on Friday, extending its losses amid rising crude oil prices and increased demand for the American currency from importers. However, the domestic currency strengthened against several other major international currencies during early trade.

The rupee had settled at 93.70 against the US dollar in the previous trading session on Thursday. At the opening of the interbank foreign exchange market on Friday, it depreciated by 33 paise from its previous closing level to begin trading at 94.03 per dollar. Selling pressure intensified during the first half-hour of trade, with the rupee quoted at 94.0975 per dollar at 9:45 am, down 0.3975 rupee, or 0.42 per cent.

The latest surge in international crude oil prices, coupled with increased dollar demand from importers, weighed on the domestic currency. During early trade, the rupee briefly slipped to an intraday low of 94.1625 against the dollar.

The weakness in the rupee came despite a marginal decline in the US Dollar Index, which measures the greenback's strength against a basket of six major international currencies. The index was trading 0.0400 points, or 0.04 per cent, lower at 103.13. Nevertheless, sustained domestic demand for dollars continued to exert pressure on the Indian currency.

In contrast to its steep decline against the US dollar, the rupee registered gains against several other major currencies in early trade.

Against the British pound (GBP), the rupee strengthened as the pound declined by Rs. 0.3637, or 0.29 per cent, from its previous closing level of 124.8259 to trade at 124.4622.

The rupee also gained against the euro (EUR). The European Union's common currency, which had closed at 104.3429 in the previous session, weakened by Rs. 0.3164, or 0.30 per cent, to trade at 104.0265.

Similarly, the Japanese yen (JPY) declined by 0.17 per cent to 0.5880, while the Chinese yuan (CNY) slipped 0.06 per cent to 14.0943 against the Indian rupee.

Foreign exchange market analysts attributed the rupee's weakness against the dollar to subdued global cues and rising crude oil prices. However, continued capital inflows from foreign institutional investors into the domestic equity market are providing significant support to the currency at lower levels.

According to market experts, if crude oil prices continue to rise, the rupee could remain volatile and trade within a limited range in the short term.

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Hindusthan Samachar / Jun Sarkar