The rupee fell by 17 paise against the US dollar in early trade on Friday, hitting a record low. The currency opened on a green note earlier in the day after US President Donald Trump softened his stance on threatening tariffs on Europe over Greenland, easing fears of a renewed trade war. Forex traders said the US president’s change in stance eased short-term geopolitical concerns. The dollar may correct as investors’ risk appetite improves, and emerging market currencies, including the rupee, may recover slightly, it added. The rupee rose to 91.41 after opening at 91.45 in the interbank market, rebounding from Thursday’s record low and gaining 7 paise to close at 91.58.The currency faces pressure from continued outflows of foreign funds amid continued global uncertainty. Foreign institutional investors continued to sell stocks, selling shares worth Rs 2,549.8 million on Thursday, according to exchange data. Traders pointed to the pending US trade deal as a major factor in the rupee fluctuations. It added that the rupee is likely to remain vulnerable to external shocks until geopolitical risks ease and a trade deal is reached. CR Forex Commenting on the outlook, Amit Pavali, MD of Advisors, said in a research note, “At current levels, it appears that the majority of global risks are priced into the rupee. “This opens the door for a possible consolidation phase and partial recovery. While the 92.00 level remains a strong resistance, if RBI support continues, USD/INR could move back to the 90.50-90.70 zone soon.” term.” In addition, the dollar index, which measures the dollar’s exchange rate against six major currencies, rose 0.01% to 98.36. Brent crude oil futures rose 0.87% to $64.62 per barrel.