The rupee weakened by 16 paise to 88.01 against the US dollar in early trade on Thursday as investors assessed the US Federal Reserve’s policy outlook following its latest rate cut.
The Fed lowered its benchmark rate by 25 basis points and signalled a gradual easing of borrowing costs through the rest of the year.
At the interbank foreign exchange market, the domestic currency opened at 87.93 and slipped to an early low of 88.01, down 16 paise from its previous close.