The Indian rupee opened on a cautious note and fell 30 paise to 71.27 against the US dollar in early trade on Friday after Moody’s changed its India rating outlook to negative citing lower economic growth.

Moody’s Investors Service has changed the outlook on India’s ratings to ‘negative’ from ‘stable’, saying there was increasing risk that economic growth would remain materially lower than the past.

Weak opening in domestic equities also weighed on the domestic currency; however, sustained foreign fund inflows and easing crude oil prices capped the losses, forex traders said.

At the interbank foreign exchange, the rupee opened at 71.26 then fell to 71.27 against the US dollar, showing a decline of 30 paise over its previous closing.