Daijiworld Media Network - Mumbai

Mumbai, Jan 8: The Indian rupee fell by 9 paise in early trade on Monday, reaching 85.83 against the US dollar, driven by a stronger dollar index and rising oil prices. Additionally, concerns over outflows from equities and India's revised GDP forecast for FY25 added pressure on the local currency.

The dollar index, which tracks the greenback against six major currencies, rose to 108.63 from 108.54 on January 7. This surge in the dollar's strength contributed to the rupee's decline.

India’s growth outlook for FY25 has been lowered to 6.4%, the lowest in four years, due to anticipated slowdowns in manufacturing and investment, as indicated by the government's latest economic data. Growth in the second quarter fell to a near two-year low of 5.4%, and the economy is expected to average 6% in the first half and 6.8% in the second.

Meanwhile, benchmark indices Nifty and Sensex opened on a negative note, led by a sharp decline in IT and metal stocks. However, gains in pharma and energy stocks helped soften the impact. As of 10:30 AM, Sensex was down 430 points at 77,805, and Nifty had fallen 107 points to 23,600.