Rupee Dips 40 Paise To 74.08 Against Dollar In Early Trade

New Delhi: Amid increased demand of the American currencies from importers and sustained foreign fund outflows, the Indian Rupee fell by 40 paise to 74.08 against the U.S. dollar in early trade on Wednesday.

On Tuesday, the rupee had depreciated by 23 paise at 73.68 against the dollar.  Forex traders have opined that the American currency’s strength against some currencies overseas as well as concerns of rift between the government and the RBI also weighed heavily on the domestic currency.

At the interbank foreign exchange, rupee opened lower at 73.91 before weakening further to 74.08 against the dollar, registering a fall of 40 paise over its previous close.

Meanwhile, the benchmark BSE Sensex opened on a high at 158.99 points but soon lost the gains and was trading at 33,876.69, down 14.44 points or 0.04%.

Furthermore, the Reserve Bank of India (RBI) has said that it will introduce Rs. 40,000 crore into the system in November by buying government bonds through open market operations (OMO) for maintaining liquidity in the market.

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