The finance ministry said that it will borrow Rs 2.68 lakh crore in the second half of the fiscal, having borrowed Rs 4.42 crore in the first half, of the total planned Rs 7.1 lakh crore for FY20.
This has raised prospects that the government would not be able to meet its fiscal deficit target and that is putting the currency under pressure against the US dollar.
Today, USD/INR pair is expected to quote in the range of 70.70 and 71.50, Somaiya added.
Foreign institutional investors (FIIs) offloaded shares worth a net Rs 1,298.56 crore on Tuesday, according to provisional exchange data.
On the global front, Asian stocks skidded to a one-month low on Thursday after the United States opened a new front in its trade dispute with Europe by imposing tariffs, adding to already-growing market fears about global growth. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.78 per cent, Japan's Nikkei stock index fell 2.20 per cent, on course for its biggest daily decline in six months, Reuters reported.
US stock futures ESc1 were up 0.25 per cent.
In commodities, oil futures rebounded in the early trade after declining 2 per cent in the previous session, the report added.