Rising crude oil prices in international markets and continuous outflow of foreign funds kept pressure on the domestic currency
Rising crude oil prices in international markets and continuous outflow of foreign funds kept pressure on the domestic currency
The rupee rose by 3 paise to 77.52 against the US dollar in early trade on Thursday as a positive trend in domestic equities and a weak US currency overseas supported the local unit.
However, rising crude oil prices in the international markets and continued outflow of foreign funds kept pressure on the domestic currency, forex traders said.
At the interbank foreign exchange, the rupee opened slightly weaker at 77.54 against the US dollar and then rebounded to 77.52, registering a rise of 3 paise over the previous close. In the early trade, it was trading in a limited range of 77.52 to 77.55.
The rupee had closed at 77.55 against the US currency in the previous session.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 102.01.
On the domestic equity market front, the 30-share Sensex was trading 271.98 points or 0.51% higher at 54,021.24, while the broader NSE Nifty climbed 66.20 points or 0.41% to 16,092.
Global oil benchmark Brent crude futures rose 0.51% to $114.61 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Wednesday as they sold shares worth 1,803.06 crore, according to stock exchange data.
Meanwhile, official sources said on Wednesday that the government is not planning to take any additional borrowing and will stick to the borrowing target set for the current fiscal despite sacrificing revenue due to reduction in duty on petroleum products and other goods. .