Rupee rises 6 paise to 83.14 against U.S. dollar in early trade

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The rupee maintained its gaining momentum for the second straight session and appreciated 6 paise to 83.14 against the U.S. dollar on Friday, amid a weak American currency against an unabated inflow of foreign funds.

According to forex traders, subdued equity market sentiment and volatility in crude oil prices, however, resisted a sharp gain in the Indian currency.

At the interbank foreign exchange, the domestic currency opened at 83.14 and traded in the range of 83.12 to 83.16 against the greenback. The local unit then traded at 83.14 against the dollar, registering a gain of 6 paise from its previous close.

This is the second consecutive day of gain in rupee. On Thursday, the domestic currency settled 14 paise higher at 83.20 against the dollar.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services, said the dollar fell to the lowest level in five months on Thursday as economic numbers released from the U.S. came below estimates.

“We expect the USDINR (Spot) to trade sideways and quote in range of 83.00 and 83.30,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.02% at 101.20 on Friday.

Global oil price benchmark Brent crude climbed 0.44% to $77.49 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 150.76 points, or 0.20%, lower at 72,259.62. The broader NSE Nifty declined 50.70 points, or 0.23%, to 21,728.00.

Foreign Institutional Investors (FIIs) bought equities worth ₹4,358.99 crore on Thursday, according to exchange data.