The rupee was trading weak at 68.76 due to increased demand for the American currency from importers amid sustained foreign capital outflows.
According to a forex dealer, dollar’s gains against other currencies overseas on worries over escalating trade tensions between the US and China also impacted the rupee sentiment. However, a strong domestic equity market capped the rupee’s losses.
The rupee opened flat at 68.70 at the interbank forex market today. It hovered in a range of 68.77 and 68.66 before quoting at 68.76, down 6 paise at 11.40 am local time.
According to a forex dealer, the rupee drew strength from a rally in domestic equities.
Overseas, the US dollar firmed against the basket of currencies in early Asian trade, it hit a more than 14-month high against the yuan, with markets gripped by worries over escalating trade tensions between the United States and China.
Meanwhile, the 30-share BSE Sensex was trading higher by 270.77 points or 0.73 per cent at 37,435.93.