Rupee slips 10 paise to 71.42 against US dollar in opening deals

The Indian rupee declined by 10 paise to 71.42 against the US dollar in opening trade on Tuesday as investor sentiments remain fragile amid coronavirus fears.

Besides, foreign fund outflows, stronger dollar against key global currencies and subdued equity market too put pressure on the domestic unit.

The rupee opened weak at 71.42 at the interbank forex market and then fell further to 71.42, down 10 paise over its last close.

The rupee had settled at 71.32 against the US dollar on Monday.

Meanwhile, Brent crude futures, the global oil benchmark, fell 1.13 per cent to USD 57.02 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they pulled out Rs 374.06 crore on Monday, as per provisional data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.17 per cent to 99.16.

The 10-year government bond yield was at 6.39 per cent in the morning trade.

Equity market benchmark BSE Sensex tumbled over 245 points to trade at 40,810 in openings deals on Tuesday on hectic selling by investors across sectors amid growing concerns over the economic impact of coronavirus epidemic.

The NSE gauge Nifty fell about 75 points to trade at 11,971 in early trade.