Symbolic picture only. , Photo credit: The Hindu
The rupee appreciated by 11 paise to 82.01 against the US dollar in early trade on April 12, tracking a positive trend in domestic equities and foreign fund inflows.
Forex traders said investors are focusing on India’s CPI data to be released later in the day.
At the interbank foreign exchange, the domestic unit opened at 82.08 against the dollar, then climbed up to 82.01, registering a rise of 11 paise from its previous close. On April 11, the rupee had closed at 82.12 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11% to 102.08. Global oil benchmark Brent crude futures rose 0.04% to $85.64 a barrel.
“Markets will focus on India’s CPI data which is expected to come in at 5.80% versus 6.44% last,” said Amit Pabari, MD, CR Forex Advisors.
However, falling inflation will prompt the RBI to pivot on the interest rate hike cycle, which could hurt the rupee going forward as the interest rate differential between the US and India narrows, Mr. Pabri said.
In the domestic equity market, the 30-share BSE Sensex advanced 74.07 points, or 0.12%, to 60,231.79. The broader NSE Nifty rose 37.45 points, or 0.21%, to 17,759.75.
Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth ₹342.84 crore, according to exchange data.