Rupee rises 7 paise to 83.48 against US dollar in early trade

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| Photo Credit: Reuters

The rupee appreciated 7 paise to 83.48 against the U.S. dollar in early trade on Tuesday amid a fresh inflow of foreign capital and positive sentiment in the domestic equity markets.

Forex traders said the strengthening American currency weighed on the local unit though it found support due to downward movement in crude oil prices overseas.

At the interbank foreign exchange market, the local unit opened at 83.52 and gained further to 83.48 against the greenback, registering a rise of 7 paise from its previous close.

On Friday, the rupee settled 1 paisa lower at 83.55 against the U.S. dollar.

Forex markets were closed on Monday on account of Bakri Id.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.01, higher by 0.07 per cent.

Brent crude futures, the global oil benchmark, declined 0.13% to $84.14 per barrel.

On the domestic equity market, the 30-share BSE Sensex rose 175.72 points, or 0.23%, to 77,168.49 points. The broader NSE Nifty climbed 45.15 points, or 0.19%, to 23,510.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth Rs 2,175.86 crore, according to exchange data.

Positive investor sentiment was attributed to strong domestic macroeconomic data which showed India’s merchandise exports in May 2024 rose 9% to $38.13 billion. The trade deficit, or the gap between imports and exports, during the month under review stood at $23.78 billion.

Also, the wholesale inflation rose for the third consecutive month in May at 2.61% on account of the rise in prices of food articles, especially vegetables, and manufactured items.