On Tuesday the rupee rose 6 paise to 83.30 against the US dollar in early trade supported by a firm trend in domestic equities.
The local unit opened at 83.37 against the greenback at the interbank foreign exchange market. Later it touched 83.30 in initial trade, registering an increase of 6 paise from its previous close.
The rupee rose by 8 paise to close at 83.36 against the US dollar on Monday. IFA Global Research Academy said in a research note, ‘There has been no adverse geopolitical development in the last 24 hours and that has helped in improved market sentiment’.
The note said, ‘Markets are looking forward to earnings from US big tech companies and if they meet expectations, we could see risk sentiment remain stable for some time despite elevated US yields’. It further added that the rupee is likely to trade in 83.25-83.40 range with sideways price action.
Meanwhile, the dollar index, which estimates the greenback’s strength against a basket of six currencies, was trading at 106.09, higher by 0.02 %.
Brent crude futures, the global oil benchmark, rose 0.41 % to $ 87.36 per barrel. While on the domestic equity market front, the 30-share BSE Sensex climbed 238.97 points or 0.32 % to 73,887.59 in early trade. The NSE Nifty advanced 68.50 points or 0.31 % to 22,404.90.
According to the exchange data, ‘On Monday, Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 2,915.23 crore’.
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