Rupee rises 8 paise to 72.88 against US dollar in early trade

Mumbai: The rupee appreciated by 8 paise to 72.88 against the US dollar in opening trade on Monday ahead of the Union Budget 2021-22 presentation in Parliament.

At the interbank forex market, the domestic unit opened at 72.89 against the US dollar, then inched higher to 72.88, registering a rise of 8 paise over its previous close.

On Friday, the rupee had settled at 72.96 against the American currency.

“The focus of the market is currently on the upcoming federal budget on Monday. Traders will watch for any announcements that could have a bearing on equity flows, and in turn on the rupee in the near term,” Reliance Securities said in a research note.

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

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 90.53.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 475.34 points higher at 46,761.11 and the broader NSE Nifty was up 121.55 points at 13,756.15.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 5,930.66 crore on a net basis on Friday, according to exchange data.

Brent crude futures, the global oil benchmark, advanced 0.71 per cent to USD 55.43 per barrel.