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The rupee appreciated 11 paise to 82.68 against the US dollar in early trade on February 28 as the American currency retreated from its higher levels.
Forex traders said continued outflow of foreign funds weighed on the local unit and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.69 against the dollar and moved marginally higher at 82.68, registering a gain of 11 paise from its previous close amid a positive trend in domestic equities. On February 27, the rupee had closed at 82.79 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06% to 104.73.
“After marking a seven-week high, DXY recovered to 104.60 levels following a bigger-than-expected fall in US durable goods orders,” said Amit Pabari. , MD, CR Forex Advisors.
Global oil benchmark Brent crude futures rose 0.17% to $82.59 a barrel. Forex traders said the rupee is likely to trade with risk aversion in global markets and with a negative bias on the positive greenback.
“Besides, demand for the dollar from importers towards the end of the month may also weigh on the rupee,” he added. In the domestic equity market, the 30-share BSE Sensex advanced 84.34 points, or 0.14%, to 59,372.69. The broader NSE Nifty rose 11.15 points, or 0.06%, to 17,403.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on February 27 as they sold shares worth ₹2,022.52 crore, according to exchange data.