Mumbai: The rupee declined 3 paise to 88.66 against the US dollar in early trade on Friday as the American currency strengthened against major rivals and foreign investors kept on withdrawing funds from the Indian capital market.

According to forex traders, the Indian rupee was also weighed down amid intense selling in domestic equity markets and upward movement in crude oil prices in the overseas market.

At the interbank foreign exchange, the rupee opened at 88.61 and slid further to trade at 88.66 against the greenback in early deals, registering a loss of 3 paise from its previous closing level.

The domestic unit had settled with a gain of 7 paise at 88.66 against the dollar on Thursday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six curre

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