Symbolic picture only. , Photo credit: The Hindu
The rupee appreciated by 10 paise to 81.96 against the US dollar in early trade on May 10 tracking the weakness of the American currency in the overseas market.
Forex traders said significant foreign fund inflows and easing crude prices supported the local unit.
At the interbank foreign exchange, the domestic unit opened at 82.06 against the dollar and then recovered to 81.96, registering a gain of 10 paise over its previous close. On Wednesday, the rupee had closed at 82.06 against the American currency.
Traders said investors were turning cautious as they awaited inflation data from the US later in the day. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05% to 101.55.
Global oil benchmark Brent crude futures fell 0.72% to $76.88 a barrel. Meanwhile, India’s inflation data, due later this week, will provide clues on the next rate hike by the Reserve Bank of India (RBI), traders said.
Foreign institutional investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth Rs 1,942.19 crore, according to exchange data.
In the domestic equity market, the 30-share BSE Sensex fell 74.08 points, or 0.12%, to 61,687.25 on Wednesday. The broader NSE Nifty rose 20.25 points, or 0.11%, to 18,245.70.