Rupee jumps 9 paise to 83.37 against U.S. dollar in early trade

Rupee strengthens against the dollar amid strong equity markets, high crude oil prices, and U.S. interest rate concerns.

The rupee climbed 9 paise to 83.37 against the U.S. dollar in early trade on Friday, tracking strong sentiment in the domestic equity markets and a weak American currency against major rivals overseas.

Forex traders said the outflow of foreign funds and elevated level of crude oil prices, however, weighed on the Indian currency.

At the interbank foreign exchange, the domestic unit opened strong at 83.40 and touched the intra-day peak of 83.36 against the greenback.

The local unit later traded at 83.37 against the dollar in the morning deals, registering a gain of 9 paise from its previous closing level. The rupee had settled 3 paise lower at 83.46 against the dollar on Thursday.

According to Gaurang Somaiya, Forex and bullion analyst, Motilal Oswal Financial Services Ltd, the dollar was weighed down against major crosses after the U.S. Federal Reserve kept the key interest rate unchanged for the sixth consecutive time.

Also, the ongoing pressures and a tight labour market indicated a stall in progress toward bringing inflation back to its 2% target this year.

Analysts also said market participants are expected to keep a close watch on the U.S. non-farm payroll data to be released on Friday. Besides, weekly unemployment claims, trade balance and factory order data from the US are likely to provide further cues.