Rupee rises 8 paise to 83.37 against greenback in early trade

Forex traders say strength of dollar in overseas market, elevated crude oil prices weigh on local unit and restrict appreciation bias

Mumbai: The rupee appreciated 8 paise to 83.37 against the US dollar in early trade on Friday, supported by a positive trend in domestic equities and foreign fund inflows.

Forex traders said the strength of the American currency in the overseas market and elevated crude oil prices weighed on the local unit and restricted the appreciation bias.

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At the interbank foreign exchange market, the local unit opened at 83.42 and gained further ground to trade at 83.37 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level.

On Thursday, the rupee appreciated 12 paise to settle at 83.45 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.15 per cent at 106.06, ahead of the crucial US inflation reading this evening.

Brent crude futures, the global oil benchmark, were trading 0.47 per cent higher at $86.80 per barrel, as fears of supply disruptions from Russia and the Middle East on continued war offset slowing demand.

On Thursday, there were good inflows taking the rupee higher from Wednesday’s closing level, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

“Inflows are expected on Friday as well, it being the month-end and quarter-end and could take the rupee higher towards 83.35. Exporters may wait to sell while importers may buy the dips,” Bhansali added.

In the domestic equity market, the 30-share BSE Sensex advanced 347.48 points, or 0.44 per cent, to 79,590.66 points. The broader NSE Nifty rose 114.55 points, or 114.55 per cent, to 24,159.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth Rs 7,658.77 crore, according to exchange data.