Rupee falls 16 paise at open to 87.3163 against US dollar

The local currency opened at 87.3163 against the US dollar and then traded at 87.3500 against the US dollar, as compared to 87.1975 against the greenback.

Indian rupee opened 16 paise down on February 28 amid global uncertainties and strong dollar index.

The local currency opened at 87.3163 against the US dollar and then traded at 87.3500 against the US dollar, as compared to 87.1975 against the greenback.

The dollar index, which measure American currency's value against six major global peers, rose to 107.390 in the early trade. It ended the previous session at 107.244.

Amit Pabari, managing director at CR Forex Advisors said amidst this pressure, the RBI is actively intervening near the 87.40 level to curb excessive depreciation of the rupee.

"All eyes on the upcoming economic data releases, including India's GDP figures, which are expected to show improved growth of 6.3% due to robust rural demand and increased government spending," Pabari added.

Further, the market will also watch the $10 billion USD/INR Buy/Sell swap auction, which will take place today.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP said Sentiments on all fronts remain weak keeping rupee also weak in the coming days.