Mumbai, Sep 11 (PTI) The rupee depreciated 27 paise to 95.79 against the US dollar in early trade on Friday driven by elevated crude oil prices and foreign portfolio outflows.

Forex traders said while record foreign exchange reserves, active Reserve Bank intervention, and robust domestic growth provide crucial support, rising global yields and crude trading above USD 108 continue to weigh heavily on the country's import bill.

At the interbank foreign exchange market, the rupee opened at 95.70 against the US dollar, then lost ground to touch 95.79, registering a loss of 27 paise from its previous close.

On Thursday, the rupee depreciated 44 paise to close at 95.52 against the US dollar.

"For the rupee, the pressure continues. It remains in an uptrend beyond 95 on the back of costly oil and foreign portfolio outflows, and we could see 96, with 95 now acting as support," said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.

The offsetting strengths are real --record foreign exchange reserves, the Reserve Bank's active presence in the market, and strong domestic growth at 7.8 per cent -- but with crude above USD 100 and global yields rising, the import bill is the dominant force in the near term, Banerjee said.

Investors will track US and Indian inflation data for further cues.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.16, higher by 0.12 per cent.

Brent crude, the global oil benchmark, was trading marginally lower by 0.76 per cent at USD 108.45-per-barrel in futures trade, amid escalating US-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.

On the domestic equities market front, Sensex slumped 628.24 points to 74,257.69 in early trade, while the Nifty dropped 221.20 points to 23,255.10.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 438.24 crore on a net basis on Thursday, according to exchange data. PTI DRR DRR ANU ANU