Rupee rises 5 paise to 83.11 against U.S. dollar in early trade
The Hindu
Rupee rises 5 paise to 83.11 vs USD on weak US currency, softening crude oil prices. FIIs buy equities worth ₹252.25 crore. USD-INR expected to trade sideways with negative bias. Euro & Pound fall after below-estimate manufacturing data. Global oil price benchmark Brent crude up 0.05%. Domestic equity markets Sensex & Nifty down.
The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade on Wednesday, tracking a weak America currency and softening crude oil prices in the overseas market.
Some buying by foreign equity investors supported the Indian currency even though it was pressured by a subdued sentiment in the domestic equity markets, forex traders said.
At the interbank foreign exchange market, the local unit opened stronger by 8 paise at 83.08 and then touched the lowest level of 83.11 against the greenback, registering a gain of 5 paise from its previous close.
On Monday, the rupee closed 4 paise lower at 83.16 against the U.S. dollar. Forex markets were closed on Tuesday on account of Dussehra.
Gaurang Somaiya, Forex and bullion analyst, Motilal Oswal Financial Services, said that the dollar fell against its major crosses after U.S. yields retracted from its record level.
He said the USD-INR (Spot) is expected to "trade sideways with a negative bias and quote in the range of 82.80 and 83.20".
"Market participants will now be keeping an eye on the US GDP data that is due tomorrow and could trigger more wild swings in bond yields and currency markets. Euro and pound fell in yesterday's session after preliminary manufacturing data came in below estimates," Mr. Somaiya added.