MUMBAI: The rupee depreciated by 5 paise to 88.75 against the US dollar in early trade on Friday, tracking a negative trend in domestic equities and foreign fund outflows.

Forex traders said investors are taking a cautious approach due to the lack of an announcement on the India-US trade deal.

At the interbank foreign exchange market, the rupee opened at 88.70 against the US dollar before dropping to 88.75, down 5 paise from its previous close.

On Thursday, the rupee settled 8 paise lower at 88.70 against the US dollar.

"Traders are perplexed by the non-announcement of the India-US trade deal despite it being very close to completion. The prolonged absence of a formal agreement has kept the rupee movement muted in the last few days," said Anil Kumar Bhansali, head of treasury and exec

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