Rupee rises 8 paise to 83.23 against US dollar in early trade

Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels, while the strength of the American currency in the overseas market weighed on the local unit and restricted the up move.
| Photo Credit: R. Ragu

The rupee appreciated 8 paise to 83.23 against the U.S. dollar in early trade on April 8, supported by positive domestic equities and fresh foreign fund inflows.

Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels, while the strength of the American currency in the overseas market weighed on the local unit and restricted the up move.

At the interbank foreign exchange market, the local unit opened at 83.27 against the greenback. It later touched 83.23 in initial trade, higher 8 paise from its previous close.

On Friday, the rupee appreciated 8 paise to close at 83.31 against the U.S. dollar as the Reserve Bank of India kept the benchmark interest rate unchanged at 6.5% for the seventh time in a row.

The rupee is expected to trade in a range as the Reserve Bank continues to protect it from falling further while inflows may bring it to 83.20, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP said.

Market participants are awaiting key macroeconomic data from the domestic as well as global front for further cues.

On the domestic front, CPI, IIP and WPI are scheduled to be released this week, while on the global front forex traders will keep a watch on U.S. CPI data.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% higher at 104.34.

Brent crude futures, the global oil benchmark, fell 1.61% to USD 89.70 per barrel.

On the domestic equity market front, the 30-share BSE Sensex scaled a fresh lifetime high of 74,658.95. The Nifty climbed to its new all-time peak of 22,623.90.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹1,659.27 crore, according to exchange data.

India’s foreign exchange reserves increased by USD 2.951 billion to USD 645.583 billion for the week ended March 29, the Reserve Bank of India (RBI) said on Friday.

This is the sixth consecutive week of a jump in overall reserves. The kitty had increased by USD 140 million to USD 642.631 billion in the previous week.