Rupee sheds 8 paise against US dollar in early trade

Mumbai: The rupee depreciated 8 paise to 65.25 against the US dollar in early trade today at the forex market on increased demand for the US currency from importers and firm foreign fund outflows even as the country’s economy grew to 7.2 per cent in the October-December quarter.

Besides, strength in dollar against other currencies overseas on rising hopes that the Fed would hike interest rates also kept pressure on the domestic unit, dealers said.

However, a higher opening in domestic equities capped the losses, the added.

Meanwhile, the domestic economy recorded a five-quarter high growth of 7.2 per cent in the October-December period on good show by key sectors like agriculture, construction and manufacturing.

On Wednesday, the rupee fell by a steep 30 paise to end at a fresh three-month low of 65.17 against the American currency after Federal Reserve’s hawkish comments reignited interest rate hike fears.

Meanwhile, the benchmark BSE Sensex was quoting higher by 63.02 points, or 0.18 per cent, to 34,247.06 in opening deals on Thursday.