Rupee depreciates 4 paise to 83.95 against US dollar in early trade

The rupee declined 4 paise to 83.95 against the US dollar in early trade on Tuesday due to a stronger greenback in global markets and weak domestic manufacturing data.

A decline in the domestic equity market also contributed to the drop in the local unit, forex traders said.

At the interbank foreign exchange market, the rupee opened at 83.94, lower by 3 paise from its previous close before dropping further to 83.95. The unit had settled at 83.91 against the US dollar on Monday.

"The rupee again extended its slide against the US dollar above 83.90 levels, slashing all previous week's gains. With August proving to be a challenging month, the rupee ranked as the second-worst-performing currency in Asia," CR Forex Advisors Managing Director Amit Pabari said.

The HSBC India Manufacturing PMI declining slightly to 57.5 in August and India's economic growth falling to a 15-month low of 6.7 per cent for the June quarter contributed to the drop in the local unit, he said.

Meanwhile, in the