Forex traders said firming crude oil prices along with the Omicron variant weighed on the local unit and had appreciable bias.
The rupee rose 11 paise to 74.31 against the US dollar in early trade on January 7, tracking gains in domestic equity markets.
At the interbank foreign exchange, the rupee opened at 74.41 against the US dollar, then climbed to 74.31, registering a rise of 11 paise from the previous close.
The rupee had closed at 74.42 against the US dollar in the previous session.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11% lower at 96.21.
Forex traders said the Omicron version of coronavirus and its impact on the economic recovery as well as firming crude oil prices weighed on the local unit and included appreciable bias. Meanwhile, on the domestic equity market front, the 30-share Sensex was trading 475.91 points or 0.80% higher at 60,077.75, while the broader NSE Nifty was trading 139.80 points or 0.79% higher at 17,885.70.
Global oil benchmark Brent crude futures rose 0.65% to $82.52 a barrel.
Foreign institutional investors were net sellers in the capital market on January 6, as they sold shares worth Rs 1,926.77 crore, according to exchange data.
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