Rupee opens on flat note against US dollar in early trade

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 90.38.

Mumbai: The rupee opened on a flat note and edged higher by 2 paise to 72.85 against the US dollar in opening trade on Wednesday, amid lacklustre trend in the domestic equity market.

At the interbank forex market, the domestic unit opened at 72.87 against the US dollar and inched higher to 72.85 against the greenback, registering a rise of just 2 paise over its previous close.

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On Tuesday, the rupee had settled at 72.87 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 90.38.

The rupee started on a positive note against the greenback on Wednesday “as the US dollar takes a tumble amid improved risk appetite in the broader markets,” Reliance Securities said in a research note.

Additionally, foreign portfolio investment (FPI) flows could lift sentiments. However, most Asian currencies have started weak this morning and again, RBI’s presence in the markets could cap gains, the note added.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 98.04 points lower at 51,231.04, and the broader NSE Nifty fell 14.80 points to 15,094.50.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,300.65 crore on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, fell 0.10 per cent to USD 61.03 per barrel.