Image for representation only. Photo credit: Raghunathan SR
The rupee strengthened by 15 paise to 82.47 against the US dollar in early trade on Friday tracking a firm trend in the domestic equity market.
Forex traders said sustained forex outflow and strength of the American currency in the overseas market weighed on investor sentiment and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.52 against the dollar, then recovered to 82.47, registering a gain of 15 paise over its previous close.
On Thursday, the rupee had closed at 82.62 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03% to 105.07.
Global oil benchmark Brent crude futures rose 1.22% to $79.65 a barrel.
According to ADP, the US economy added 235,000 private jobs in December against the expected 150,000. Initial jobless claims also came in lower at 204,000 against an estimated 225,000, the IFA Global Research Academy said in a research note.
It added, “This increases the likelihood of the US Fed delivering on wages in line with its hawkish communication and hence core inflation could be more sustained.”
In the domestic equity market, the 30-share BSE Sensex was trading 177.35 points or 0.20% higher at 60,530.62. The broader NSE Nifty rose 40.80 points, or 0.23%, to 18,032.95.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth ₹1,449.45 crore, according to exchange data.