By laksh5382 
Rupee It traded 7 paise lower at 84.73 against the US dollar in early trade on Monday, dragged down by foreign fund outflows and a subdued trend in domestic equities.
Forex traders said the rupee remained weak due to demand for the dollar from importers and foreign banks.
At the interbank foreign exchange, the rupee opened at 84.70 against the greenback, then rose to 84.73 in early trade, showing a decline of 7 paise over its previous close.
On Friday, the rupee strengthened by 5 paise and closed at 84.66 against the US dollar.
“On the domestic front, all eyes will be on Industrial Production (IIP) and CPI data RBI monetary policy announced last weekThe CRR cut of 50 basis points provided much-needed liquidity and supported the rupee, said Amit Pabari, MD, CR Forex Advisors.
Reserve Bank of India It kept its key interest rate unchanged on Friday, citing inflation risks, but cut the cash reserve ratio that banks are required to deposit with the central bank, allowing lenders to keep funds available to support the slowing economy. Get a boost.
Pabari further said that Wave of IPO activity It is expected that this will bring substantial investment, which will provide additional support to the rupee.
“We expect the rupee’s downside to be limited, with the USD-INR pair likely to trade in the range of 84.50 to 85 in the near term,” Pabari said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 percent higher at 106.14.
Global oil benchmark Brent crude rose 0.08 percent to $106.15 a barrel in futures trade.
In the domestic equity market, 30-share bse sensex It was trading at 81,632.83 points with a decline of 76.29 points or 0.09 per cent in morning trade, while nifty It was down 24.20 points or 0.1 percent at 24,653.60.
According to exchange data, foreign institutional investors (FIIs) sold ₹1,830.31 crore in the capital market on a net basis on Friday.
Meanwhile, the RBI on Friday said India’s foreign exchange reserves rose by $1.51 billion to $658.091 billion in the week ended November 29.
Total reserves fell $1.31 billion to $656.582 billion in the previous reporting week.