Rupee rises 5 paise to 83.28 against US dollar in early trade
The Indian rupee gained 5 paise to 83.28 against the US dollar in early trade on Wednesday amid a weak American currency and foreign fund inflow in the domestic equities. The local currency opened higher at 83.31 a dollar as compared to its previous close of 83.33.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.13% at 102.61.
On Tuesday, the rupee settled at 83.33 against the US dollar.
Positive sentiment in the domestic equity markets and easing crude oil price also boosted the Indian currency, said Forex traders.
“Rupee is likely to appreciate further today amid weak dollar, optimistic domestic market sentiments and drop in US treasury yields. Dollar is showing weakness and has sunk to its lowest in more than 3-months on anticipation that the US Federal Reserve could start cutting rates by the first half of next year. Additionally, dovish statements from Fed officials and a mixed batch of economic data from the US will weigh on the dollar,” ICICI Direct said in a note.
It expects USDINR Dec to slip to 83.22 level as long as it stays below 83.50 levels.
Brent crude futures, the global benchmark, eased 0.06% to $81.63 a barrel, while US West Texas Intermediate crude futures gained 0.16% to $76.53 a barrel.
On the domestic front, the equity market traded higher amid mixed global cues.
The Sensex traded 380.03 points, or 0.57%, higher at 66,554.23, while the Nifty 50 rallied 111.05 points, or 0.56%, to 20,000.75.
Foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth ₹783.82 crore, according to exchange data.
(With inputs from PTI)
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