Rupee gains 11 paise to 90.12 against dollar in early trade

The rupee rebounded from lower levels to gain 11 paise against the US dollar in early trade on Wednesday, supported by softer crude oil prices and a weaker dollar overseas, even as markets remained cautious ahead of key US inflation data.

Mumbai: The rupee rebounded from low levels and gained 11 paise to trade at 90.12 against the US dollar in early deals on Wednesday, tracking lower crude oil prices and retreating American currency overseas.

Domestic equity markets also showed resilience even as traders stayed cautious, watching geopolitical developments and awaiting US inflation numbers that are expected to provide cues for the Federal Reserve’s policy move, forex analysts said.

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At the interbank foreign exchange, the rupee opened at 90.26 and strengthened up to 89.94 level before trading at 90.12 against the greenback, 11 paise higher from the closing level of the previous session.

On Tuesday, the rupee declined 6 paise to close at 90.23 against the US dollar.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 98.90.

Brent crude, the global oil benchmark, was trading 0.47 per cent lower at USD 65.17 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex rose 34.81 points to 83,662.50, while the Nifty gained 14.15 points to 25,746.90.

Foreign institutional investors offloaded equities worth Rs 1,499.81 crore on Tuesday, according to exchange data.