Rupee steadies against US Dollar in early trade

Positive equity market sentiment and a weak American currency, however, provided support to the domestic unit, forex traders said.

Mumbai: The rupee traded on a flat note at 82.85 against the US dollar in early trade on Friday amid outflow of foreign funds and volatile crude oil prices in the overseas market.

Positive equity market sentiment and a weak American currency, however, provided support to the domestic unit, forex traders said.

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At the interbank foreign exchange, the domestic currency opened at 82.87 and inched up further to trade at Thursday’s closing level of 82.85 against the greenback.

The rupee appreciated 11 paisa to close at 82.85 against the US dollar on Thursday. The unit saw a cumulative gain of 19 paise in the previous four consecutive sessions since February 15, when it recorded the closing level of 83.05 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 103.85.

Analysts attributed the retreating dollar to cautious move by investors ahead of crucial manufacturing, employment and home sales data in the US.

Brent crude futures, the global oil benchmark, declined 0.42 per cent to USD 83.32 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 104.66 points or 0.14 per cent higher at 73,262.90 points. The broader NSE Nifty climbed 34.45 points or 0.16 per cent to 22,252.90 points. The 50-share index had ended Thursday’s session at its highest ever closing level of 22,217.45 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,410.05 crore, according to exchange data.