India, Aug. 17 -- The Indian rupee declined 17 paise to 95.59 against the US dollar in early Monday trading, as cautious sentiment and a weaker near-term outlook weighed on the domestic currency.
Market participants turned more cautious after the Reserve Bank of India said on August 14 that its swap facility for FCNR (B) deposits would apply only to deposits mobilised up to August 31. The deadline had earlier been set at September 30.
The FCNR (B) scheme allows banks to attract foreign currency deposits by offering interest on deposits held by non-resident Indians, providing banks with access to foreign currency funds.
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