The rupee weakened by 15 paise to 86.10 against the US dollar in early trading on Friday, as continued selling by foreign institutional investors, driven by a narrowing bond yield differential, pressured the domestic currency.
Forex dealers noted that speculation around a potential RBI rate cut in the upcoming Monetary Policy Committee (MPC) meeting—spurred by easing food and energy prices—is also dampening short-term rupee sentiment, even though such a move could support long-term economic growth.
At the interbank foreign exchange market, the rupee opened at 85.95 and declined to 86.10 against the dollar, marking a 15 paise loss from its previous close.