Rupee slips 12 paise against dollar in early trade

Mumbai: The rupee opened on a weak note and declined 12 paise to 69.48 against the US dollar in opening trade Wednesday, amid simmering geopolitical tensions in the Middle East and higher crude oil prices.

The rupee opened weak at 69.40 at the interbank forex market and then fell further to 69.48, down 12 paise over its last close.

The rupee had settled at 69.36 against the US dollar on Tuesday. Forex traders said, rupee is trading in a narrow range as market participants are cautious amid rising tensions between the US and Iran.

On the global front, the trade concerns between the US and China, and rising US-Iran tensions are poised to dominate a high-stakes G20 summit from Friday.

Besides, strengthening of the American currency in the overseas market weighed on the local unit.

Meanwhile, foreign fund inflows and strong opening in domestic equities supported the domestic currency. Brent crude futures, the global oil benchmark, rose 1.60 per cent to USD 66.09 per barrel.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,157.87 crore on Tuesday, as per provisional data.

Domestic bourses opened on a positive note on Wednesday with benchmark indices Sensex trading 121.08 points higher at 39,556.02 and Nifty up 21.60 points at 11,818.05.