The Indian Rupee depreciated against the US dollar on Friday, weighed down by increased dollar demand from importers and a fall in domestic stock markets. Concerns surrounding the global economic outlook further pressured the local currency.

At the interbank foreign exchange market, the Rupee opened lower and continued its downward trend throughout the trading session. Increased dollar buying by oil importers and other businesses contributed to the Rupee’s decline.

The weakness in the Indian stock market also added to the negative sentiment surrounding the Rupee. Foreign portfolio investors were observed to be cautious, further impacting market liquidity.

Forex traders indicated that they are closely monitoring global economic developments and capital flows for further direction. The performance of other Asian currencies will also be a key factor influencing the Rupee’s movement.

Analysts suggest that the Rupee’s trajectory will depend on the Reserve Bank of India’s (RBI) intervention and the overall global risk sentiment. The RBI has been actively managing the Rupee’s volatility through various measures.