Rupee rises 7 paise to 73.84 against US dollar in early trade

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.07 per cent to 91.93.

Mumbai: The rupee appreciated 7 paise to 73.84 against the US dollar in the opening session on Thursday on sustained foreign fund inflows and weak American currency.

At the interbank forex market, the domestic unit opened at 73.85 against the US dollar, and gained ground to touch 73.84 against the greenback, registering a rise of 7 paise over its previous close.

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On Wednesday, the rupee appreciated by 10 paise to close at nearly a one-month-high of 73.91 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.07 per cent to 91.93.

“Foreign fund inflows into the domestic equity markets could also help the local unit. However, these flows are being continuously mopped up by the central bank and could cap gains in the currency,” Reliance Securities said in a research note.

“The major trigger point for the currency markets could come on Friday as investors awaited economic growth data for the second quarter,” the note added.

Traders said lack any major cues from the US could keep the currency in a small trading range as US markets are shut on Thursday on account of Thanksgiving holiday.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 24.20 crore on a net basis on Wednesday, according to exchange data.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 53.35 points lower at 43,774.75, and the broader NSE Nifty fell 14.05 points to 12,844.35.

Brent crude futures, the global oil benchmark, rose 0.43 per cent to USD 48.82 per barrel.