Rupee rises 7 paise to 72.98 against US dollar in early trade

The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.31 per cent to 90.73.

Mumbai: The rupee appreciated by 7 paise to 72.98 against the US dollar in opening trade on Friday, tracking positive domestic equities.

At the interbank forex market, the domestic unit opened at 73.01 against the US dollar and inched higher to 72.98 against the greenback, registering a rise of 7 paise over its previous close.

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On Thursday, the rupee had settled at 73.05 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.31 per cent to 90.73.

“The US Dollar Index has started higher this Friday morning in Asian trade. However, upside was capped as an improvement in risk appetite sapped demand for the safe haven dollar with investors taking cheer from US economic data wasn’t as bad as feared,” Reliance Securities said in a research note.

Asian currencies were trading weak against the greenback and could keep appreciation limited for the rupee, the note added.

Meanwhile, the Economic Survey 2020-21 will be tabled in Parliament on Friday. Markets will be awaiting cues from the Union Budget on Monday.

Market participants will also look for cues from April-December fiscal deficit data and FY20 revised GDP data.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 119.59 points higher at 46,993.95, and the broader NSE Nifty advanced 40.90 points to 13,858.45.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 3,712.51 crore on a net basis on Thursday, according to exchange data.

Brent crude futures, the global oil benchmark, rose 0.02 per cent to USD 55.52 per barrel.