Rupee rises 10 paise to 82.93 against US dollar in early trade

The rupee appreciated by 10 paise to 82.93 against the US dollar in early trade on Tuesday tracking a positive trend

Mumbai: The rupee appreciated by 10 paise to 82.93 against the US dollar in early trade on Tuesday tracking a positive trend in domestic equities and foreign fund inflows.

Forex traders said the rupee is trading in a narrow range as the soft US dollar and positive domestic markets provided support, while concerns over global economic slowdown and rising expectations of a rate hike by FOMC amid strong economic data from the US may cap sharp gains for the local unit.

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At the interbank foreign exchange, the domestic unit opened at 82.93, registering a rise of 10 paise over its last close.
On Monday, the rupee closed on a flat note at 83.03 against the American currency.

In the initial trade, the rupee also touched a low of 83.00 against the greenback.

“Major crosses have been weighed down in the last few weeks following broader strength in the dollar. Safe haven buying in the greenback is witnessed also as economic concerns in China continue to weigh on the overall market sentiment,” Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

Somaiya further said that “we expect the USDINR (Spot) to trade sideways and quote in the range of 82.80 and 83.20”.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.02 per cent to 104.55.

Brent crude futures, the global oil benchmark, rose 0.39 per cent to USD 90.99 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 310.36 points or 0.46 per cent higher at 67,437.44. The broader NSE Nifty advanced 80.40 points or 0.4 per cent to 20,076.75.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 1,473.09 crore, according to exchange data.