The inflow of new foreign funds into the capital market added to the momentum of the Indian currency.
The inflow of new foreign funds into the capital market added to the momentum of the Indian currency.
The rupee rose 30 paise to 79.39 against the US dollar in early trade on Friday, July 29, 2022, buoyed by fresh foreign fund inflows into capital markets and a firming trend in domestic equities.
Besides, a weak greenback overseas against major rivals supported the local unit, traders said.
At the interbank forex, the rupee opened sharply higher at 79.55 against the US dollar, then gained further momentum to bid 79.39 in opening deals, registering a gain of 30 paise over the previous close.
The rupee had closed at 79.69 against the US currency in the previous session.
On the domestic equity market front, the 30-share Sensex was trading 594.25 points or 1.05 per cent higher at 57,452.04, while the broader NSE Nifty rose 182.85 points or 1.08 per cent to 17,112.45.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.30 per cent to 106.03.
Global oil benchmark Brent crude futures slipped 0.11 per cent to $107.02 a barrel.
Foreign institutional investors became net buyers in the capital market as they bought shares worth Rs 1,637.69 crore on Thursday, according to exchange data.
Meanwhile, Axis Bank Chief Economist Saugata Bhattacharya said on Thursday that the Reserve Bank’s rate-setting panel is expected to hike the repo rate by 0.35-0.50 per cent in next week’s review meeting in an effort to contain inflation.