The rupee appreciated by 5 paise to 83.22 against the US dollar in early trade on Tuesday supported by a positive trend in domestic equities. The domestic currency opened at 83.24 against the dollar and then touched an early high of 83.22, registering a gain of 5 paise over its previous close.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% higher at 106.30.
On Monday, the rupee ended at 83.27 against the US dollar.
Forex traders said the rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.
“This week, on the domestic front, no major economic data is expected to be released but on the global front, from US the dollar could react to Fed member’s speech and a couple of important economic data from the US,” said Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial.
Somaiya further noted that “we expect the USDINR(Spot) to trade sideways and quote in the range of 83.05 and 83.50.”
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Brent crude futures, the global oil benchmark, eased 0.01% to $89.64 per barrel.
On the domestic front, the benchmark equity indices traded higher. The 30-share BSE Sensex was trading 267.41 points, or 0.40%, higher at 66,434.34. The broader NSE Nifty advanced 83.95 points, or 0.43%, to 19,815.70.
On Monday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹593.66 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹1,184.24 crore, as per provisional data available on the exchanges.
(With inputs form PTI)
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