Indian rupee opened nearly 6 paise down at 66.57 against the US dollar at the Interbank Foreign Exchange on Thursday due to higher demand for the American currency from importers and banks. At 9.40 am, the currency was trading nearly 8 paise down at 66.89. Meanwhile, domestic equity markets opened in green following global cues. The BSE Sensex opened 77.37 points, or 0.27 per cent, up at 28,298.35, while NSE Nifty opened 24.75 points, or 0.28 per cent, up at 8,768.70.
According to market experts, firming dollar against other currencies overseas amid mounting expectations of higher borrowing costs in the US weighed on the rupee. The rupee on Wednesday slipped 5 paise to end at 66.51 and snapped its three-straight session rally.
Foreign institutional investors stood net buyers in the domestic equity markets on Wendesday as they bought shares worth of Rs 503.72 crore on October 5. Gross purchases of FIIs stood at Rs 4,953.86 while gross sales remained at Rs 4,450.14 crore.