Rupee rises 6 paise to 83.30 against US dollar in early trade

Mumbai: The rupee appreciated 6 paise to 83.30 against the US dollar in early trade on Tuesday, supported by a firm trend in domestic equities.

At the interbank foreign exchange market, the local unit opened at 83.37 against the greenback. It later touched 83.30 in initial trade, registering a rise of 6 paise from its previous close.

On Monday, the rupee appreciated by 8 paise to close at 83.36 against the US dollar.

“There has been no adverse geopolitical development in the last 24 hours and that has helped restore some confidence and improved market sentiment,” IFA Global Research Academy said in a research note.

“Markets are looking forward to earnings from US’ big tech companies and if they meet or beat expectations, we could see risk sentiment remain stable for some time despite elevated US yields,” the note said, adding that the rupee is likely to trade in 83.25-83.40 range with sideways price action.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 106.09, higher by 0.02 per cent.

Brent crude futures, the global oil benchmark, rose 0.41 per cent to USD 87.36 per barrel.

On the domestic equity market front, the 30-share BSE Sensex climbed 238.97 points or 0.32 per cent to 73,887.59 in early trade. The NSE Nifty advanced 68.50 points or 0.31 per cent to 22,404.90.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 2,915.23 crore, according to exchange data.