Image has been used for representational purpose only. , Photo credit: SR Raghunathan
The rupee appreciated by 16 paise to 82.71 against the US dollar in early trade on Friday tracking a firm trend in domestic equities.
Forex traders said sustained foreign fund outflows weighed on investor sentiment and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.77 against the dollar, then recovered to 82.71, registering a gain of 16 paise over its previous close.
Read also: Rupee depreciates 2 paise to close at 82.82 against US dollar
On Thursday, the rupee strengthened in a narrow range and closed 7 paise lower at 82.87 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.13% to 103.97.
The rupee traded in a range for the fourteenth straight session. IFA Global Research Academy said in a research note that strong bids were seen around 82.75, which prevented $/₹ from moving lower despite month-end selling by exporters, adding that “with sideways movement of Rs It is likely to trade in the range of 82.65-82.95.” action”.
Global oil benchmark Brent crude futures fell 0.13% to $83.35 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 179.33 points or 0.29% higher at 61,313.21. The broader NSE Nifty rose 54.55 points, or 0.3%, to 18,245.55.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth ₹572.78 crore, according to exchange data.