The Indian rupee slipped further to fall below Rs71 per dollar amid strengthening of the American currency and weak opening in domestic equities. Besides, concerns about US-China trade negotiations also kept investors edgy.
Currently, the local unit is trading at 71.14/$, down 35 paise in the late morning trade.
The domestic currency opened lower by 38 paise at Rs71.15/$ then fell further to 71.16/$. The 10-year government bond yield was at 6.505% compared with its previous close of 6.498%.
Meanwhile, foreign institutional investors (FIIs) were net buyers in the capital markets, putting in Rs203.73cr on Friday.
The local currency market was closed on Monday on account of Bakri Id.
Meanwhile, oil prices edged lower, offsetting narrow gains in the previous session, on the expectation major producers would continue to reduce global supplies due to a slowing economic growth outlook.
On the economy front, the CPI inflation data for July along with the data on balance of trade are scheduled to be released today.