Rupee rises 3 paise to 83.13 against US dollar in early trade

Forex traders said the Indian currency remained under pressure due to selling of equities from foreign institutional investors amid volatility in crude prices.
| Photo Credit: Reuters

The rupee appreciated 3 paise to 83.13 against the US dollar in early trade on Tuesday, tracking positive cues from domestic equity markets and a weak American currency against major overseas rivals.

However, forex traders said the Indian currency remained under pressure due to selling of equities from foreign institutional investors amid volatility in crude prices.

At the interbank foreign exchange, the domestic currency opened at 83.17 and touched the highest level of 83.10 against the greenback. The unit later traded at 83.13 against the dollar, registering a rise of 3 paise from its previous close.

On Friday, the domestic currency settled at 83.16 against the dollar.

Forex markets were closed on Monday on account of Christmas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 per cent lower at 101.21 on Tuesday.

Global oil price benchmark Brent crude inched up 0.01 per cent to USD 79.08 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 40.52 points or 0.06 per cent higher at 71,147.48. The broader NSE Nifty rose 31.65 points or 0.15 per cent to 21,381.05.

The RBI data released on Friday showed that India’s forex reserves jumped USD 9.112 billion to USD 615.971 billion in the week ended December 15 and the quantum of increase was one of the highest for a week.

Foreign institutional investors (FIIs) were net sellers in the equity market on Friday as they offloaded shares worth Rs 2,828.94 crore, according to exchange data.

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