Sliding for the third straight day, the Indian rupee depreciated by another seven paise against the US currency in early trade today on anticipation that the domestic bourses may open weak leading to more capital outflows by funds.
At the Interbank Foreign Exchange (Forex) market, the domestic currency was quoted at 49.77 against the $, a fall of seven paise over the previous close of 49.70/72.
The domestic currency crashed by 88 paise to close at nearly two-and-a-half-month low of 49.70/72 yesterday.
Dealers said concerns of capital outflows by funds on fears that the domestic stock markets may open in the negative zone, in tandem with other Asian bourses, mainly put pressure on the Indian rupee.
They said dollar's gains against some other currencies also had some pressure on the domestic unit.
