Re drops 17 paise muting earlier gains

Mumbai: The rupee depreciated 17 paise to 81.64 against the US dollar in morning trade on Thursday, tracking weak domestic equities ahead of US inflation data.

Forex traders said the focus will be on the US October CPI print scheduled to be released later on Thursday. At the interbank foreign exchange, the domestic unit opened at 81.61 against the dollar, then lost further ground to quote at 81.64, registering a loss of 17 paise over its previous close. On Wednesday, the rupee appreciated by 45 paise to close at 81.47 against the US dollar.

"A poorer than-expected show by the Republicans in the midterms too is hurting sentiment. Republicans are likely to take over control of the House with a narrower margin than earlier expected and the Senate race is still wide open," IFA Global Research Academy said in a research note.

It further added that Fed member Neel Kashkari said the Fed would do what it needs to do to lower inflation and that any talk of a Fed pivot is entirely premature. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.26 per cent to 110.26.