The rupee fell 8 paise in early trade on Friday to 82.68 against the US dollar. It had closed at 82.60 against the dollar on Thursday.
The dollar index — which measures the American currency against the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc and the euro — was last trading 0.16 percent down at 102.705.
Crude oil benchmarks were trading higher today. At the last count, Brent crude futures were trading 0.45 percent up at $76.91 per barrel, while WTI futures were trading 0.5 percent higher as well at $72.8 per barrel.
"In the first week of July, the Rupee depreciated by over 1.25 percent as this depreciation was primarily driven by the strengthening of the U.S. dollar, weaker Yuan and stop loss getting triggered which resulted into unwinding of carry trade (borrow in currency where interest rates are lower and invest where rates are higher)," said Amit Pabari, the managing director of CR Forex Advisors.
On the global front, Pabari said DXY continued to strengthen as market sentiment deteriorated due to concerns over economic data and the possibility of central banks adopting more dovish stances, despite the presence of mixed data. "There are mostly positive indicators regarding US employment, contributing to the surge in Treasury bond yields, reaching multi-month highs. Today’s US non-farm payroll (NFP) report is required to validate expectations of a Federal Reserve interest rate increase beyond July. If DXY closes above 103.50 then it would move towards 105-105.50 levels in the coming days," he added.
Both, Indian benchmark indices were trading in the red on Friday. While Sensex was trading 0.62 percent, the Nifty 50 was trading 0.66 percent down around noon.
