Rupee rises 3 paise to 82.99 against US dollar in early trade

Forex traders said rupee is trading in a narrow range as strong American currency and elevated crude oil prices weighed on the local unit and restricted the uptick in the domestic unit.

Mumbai: The rupee appreciated 3 paise to 82.99 against the US dollar in early trade on Thursday, amid a positive trend in domestic equities.

Forex traders said rupee is trading in a narrow range as strong American currency and elevated crude oil prices weighed on the local unit and restricted the uptick in the domestic unit.

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At the interbank foreign exchange, the domestic currency opened at 83.00, then touched 82.99 against the greenback in initial deals, registering a rise of 3 paise from its previous close.

On Wednesday, the rupee appreciated 6 paise to close at 83.02 against the US dollar.

“In the ongoing tug-of-war between positive and negative factors influencing the market, there is a tilt towards the positive aspects favouring the rupee,” CR Forex Advisors MD- Amit Pabari said.

Momentum suggests the pair will likely consolidate within the narrow range of 82.80 to 83.10, with any upward movement above 83 seen as a selling opportunity, Pabari said.

“Overall, market sentiment was buoyed by the rupee’s stronger fundamentals, supported by expectations of higher growth rates and controlled inflation,” Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 104.69.

Brent crude futures, the global oil benchmark, declined 0.49 per cent to USD 81.20 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 86.23 points or 0.12 per cent higher at 71,909.06 points. The broader NSE Nifty advanced 57.90 points or 0.27 per cent to 21,897.95 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth Rs 3,929.60 crore, according to exchange data.