Symbolic picture only. , Photo credit: The Hindu
The rupee appreciated 24 paise to 81.73 against the US dollar in early trade on March 6 amid a positive trend in domestic equities. Forex traders said foreign fund inflows also supported the local unit.
At the interbank foreign exchange, the domestic unit opened at 81.85 against the dollar, then climbed up to 81.73, registering a rise of 24 paise from its previous close. On Friday, the rupee had closed at 81.97 against the American currency.
Forex traders said the rupee is likely to trade with a positive bias on improving global risk sentiments and fresh foreign fund inflows. “Apart from this, weak crude oil prices and muted dollar index may also support the domestic currency,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09% to 104.43. Global oil benchmark Brent crude futures fell 0.70% to $85.23 a barrel.
In the domestic equity market, the 30-share BSE Sensex advanced 564.81 points, or 0.94%, to 60,373.78. The broader NSE Nifty rose 166.95 points, or 0.95%, to 17,761.30.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday as they bought shares worth Rs 246.24 crore, according to exchange data.