MUMBAI: The Indian rupee edged lower on Thursday as investors stayed on the sidelines ahead of the stock market opening to gauge foreign appetite for local assets, a key driver for the local unit.
At 9:07 a.m, the partially convertible rupee (INR=IN) was at 42.49/50 per dollar, weaker than 42.45/46 per dollar on Wednesday.
Oil, India’s biggest import, traded below $124 a barrel, after touching a record near $127 on Tuesday. High global oil prices raise the risk of widening India’s trade deficit and putting downward pressure on the rupee.
Foreign funds have been net sellers of nearly $3 billion of stocks this year, with the benchmark index down 16.3% since the close of 2007.