Rupee gains 9 paise to 81.29 against U.S. dollar

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| Photo Credit: The Hindu

The rupee gained 9 paise to 81.29 against the U.S. dollar in early trade on Monday supported by broad dollar weakness and a firm trend in domestic equities.

Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.

At the interbank foreign exchange, the domestic unit opened at 81.29 against the dollar, registering a rise of 9 paise over its previous close.

On Friday, it depreciated by 8 paise to close at 81.38 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.32% to 101.87.

Brent crude futures, the global oil benchmark, fell 0.53% to $84.83 per barrel.

According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian rupee opened stronger on Monday, tracking a weak dollar and a possibility of smaller rate hike from the U.S. Fed in February.

Most of the Asian peers were stronger this morning, and stable oil prices and the recent fall in Treasury yields could aid the local unit.

However, attractive rates for importers and possibility of dollar-buying intervention by the Reserve Bank of India could limit sharp gains.

In the domestic equity market, the 30-share BSE Sensex was trading 143.87 points or 0.24% higher at 60,405.05. The broader NSE Nifty advanced 22.75 points or 0.13% to 17,979.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹2,422.39 crore, according to exchange data.