The rupee depreciated 2 paise to 81.96 against the US dollar in early trade on Thursday Representative Image | photo credit: AFP
The rupee depreciated 2 paise to 81.96 against the US dollar in early trade on Thursday amid a weak trend in Asian markets and a rise in crude oil prices.
According to forex traders, positive sentiments in the domestic equity market and inflow of foreign funds provided support to the Indian currency.
At the interbank foreign exchange, the domestic unit opened weak at 81.97 against the dollar and recovered to 81.93. Against the American currency, it slipped to 81.96, registering a decline of 2 paise over its previous closing price.
On Wednesday, the rupee had closed at 81.94 against the American currency.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six major currencies, rose 0.02 per cent to 101.50.
Global oil benchmark Brent crude futures rose 0.71 per cent to $76.95 a barrel.
Traders are also awaiting the inflation data, which will provide signals for the next monetary policy moves by the Reserve Bank of India.
Anand James, chief market strategist, Geojit Financial Services, said, “Slipping beyond 81.97 has reduced the upside momentum, the trend has again turned sideways. If hold at 81.85, expect another bounce, which is Less likely to be directional, unless 82.2 breaks.” ,
Foreign institutional investors (FIIs) were net buyers in the capital market on Wednesday as they bought shares worth Rs 1,833.13 crore, according to exchange data.
In the domestic equity market, the 30-share BSE Sensex rose 41.24 points, or 0.07 per cent, to 61,981.44 on Thursday. The broader NSE Nifty rose 5.55 points, or 0.03 per cent, to 18,320.65.