The Indian Rupee depreciated against the U.S. dollar in opening trade on Tuesday, weighed down by persistent foreign funds outflows.
At the interbank foreign exchange, the rupee opened at 79.04 against the dollar--a decline of 9 paise over previous close. The rupee-dollar exchange rate stood at 78.95 on Monday.
According to Sriram Iyer, senior research analyst at Reliance Securities, the rupee is expected to remain range-bound against the dollar today.
"Stronger crude, weak Asian and Emerging Market currencies, a rising dollar and benchmark bond yields could keep appreciation bias capped," Iyer said. "However, equity futures in Asia have started with gains and could cap depreciation bias."
The dollar index, which gauges the greenback's strength against a basket of six currencies, was at 105.14. Brent crude futures fell 0.03% to $113.47 per barrel.
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