Mumbai, February 16 The rupee slipped by 1 paisa to 90.67 against the US dollar in the early session on Monday amid outflows from foreign investors and a stronger dollar.
A slight increase in global crude oil prices and a sharp decline in the country's foreign exchange reserves also weighed on the local currency, according to forex traders.
At the interbank foreign exchange market, the rupee opened higher at 90.63 before falling to 90.67 against the US dollar, down 1 paisa from its previous close.
The rupee consolidated in a narrow range and closed 5 paise lower at 90.66 against the US dollar on Friday.
"The rupee opened slightly stronger than Friday's close and should remain in a narrow range on a day when demand for cash will be lower due to the US Presidential Day holiday," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Markets will be watching for India's trade balance figures, which could be released by the commerce ministry on Monday, he said.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, was trading 0.02 per cent higher at 96.93.
Brent crude, the global oil benchmark, was trading 0.04 per cent higher at USD 67.78 per barrel in futures trade.
At the domestic equity markets, the Sensex declined by 71.53 points to 82,555.23 in early trade while the Nifty was down by 11.95 points to 25,459.15.
Foreign institutional investors offloaded equities worth Rs 7,395.41 crore on Friday, according to exchange data.
Reserve Bank data released on Friday showed that India's foreign exchange reserves fell by USD 6.711 billion to USD 717.064 billion during the week ended February 6. In the previous reporting week, the kitty had jumped by USD 14.361 billion to an all-time high of USD 723.774 billion.
