The rupee declined 12 paise to 68.86 against the US dollar in early trade today, pressured by a lower opening in the domestic stock market. Increased demand for the American currency from importers and banks amid persistent foreign fund outflows also weighed on the rupee.
Foreign portfolio investors (FPIs) sold shares worth Rs 284.58 crore yesterday, as per provisional data. Forex dealers said the rise of euro and yen against the greenback capped the rupee's fall. Yesterday, the rupee had lost 17 paise at 68.74 against the dollar amid rising crude oil prices and inflationary concerns after MSP hike for kharif crops by the government. Meanwhile, the benchmark Sensex moved down by 25.12 points, or 0.07 per cent, at 35,620.28 in opening trade today.