The rupee slipped as much as 20 paise to 71 against the US dollar in the early trade on Thursday. The currency opened at 70.87.
In the previous session, the domestic unit settled 10 paise lower at 70.80 against the greenback amid rising crude prices and heavy foreign fund outflows.
Forex traders said dollar buying by oil importers and strengthening of the greenback against major currencies overseas weighed on the domestic unit.
"Today, the rupee could witness some selling pressure after Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production. USD/INR pair is expected to open at 70.95 (Feb) and quote in the range of
70.70 and 71.20," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services.
The rupee, which is Asia’s worst-performing currency for the year, offered the region’s best returns over the past week as slowing inflation numbers added to the cheer over the RBI’s surprise reduction in interest rates.
On the global front, Asian stock markets
started in a cautious mood on Thursday ahead of China trade data. Oil prices inched up, buoyed by hopes that potential progress in the latest Sino-US tariff talks would improve the global economic outlook, Reuters reported.