Rupee rises 5 paise against US dollar in early trade

The Hindu’s updates on Rupee vs dollar in forex markets

Rupee traded in a narrow range and appreciated 5 paise to 83.88 against the US dollar in morning trade on Friday (August 23, 2024) supported by easing crude oil prices and fresh foreign fund inflows.

Forex traders said significant correction in oil prices, which is hovering around USD 77 per barrel, is a major positive for the rupee, given India's substantial oil imports.

At the interbank foreign exchange market, the local unit opened at 83.93 and then gained ground and touched 83.88, registering a rise of 5 paise from its previous close.

On Thursday, the rupee traded in a narrow range and settled lower by 3 paise at 83.93 against the American currency.

"Despite the dollar index reaching a recent low, the Indian rupee remains steadfast, showing little signs of strengthening. This resilience can be attributed to the central bank's deliberate interventions, aimed at stabilizing the USDINR around the 83.90-95 range," CR Forex Advisors MD-Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.15 per cent to 101.35 points.

Brent crude, the global oil benchmark, was 0.12 per cent up at USD 77.31 per barrel in futures trade, "In the near term, the rupee is expected to trade within a narrow range, with an upside limit around 83.80 and support around 84.00," Pabari added.