The rupee depreciated 4 paise to 75.76 against the U.S. dollar in early trade on Thursday as weak domestic equities coupled with strong dollar and rising coronavirus cases weighed on investor sentiments.
Forex traders said investor sentiment weakened after the U.S. threatened new tariffs on European imports amid escalating trade war fears. Besides, border tension with China and rising COVID-19 cases dragged down the local unit.
The rupee opened at 75.76 against the dollar, down 4 paise over its previous close.
It had settled at 75.72 against the greenback on Wednesday.
“The risk sentiment was soured as U.S. trade representative has proposed imposing tariffs on USD 3.1 billion of imports from France, Germany, Spain and the UK. The proposal has been put out to seek public opinion until July 26,” said Abhishek Goenka, Founder and CEO, IFA Global.