The rupee gained 33 paise to 81.77 against the U.S. dollar in early trade on July 3 supported by sustained foreign fund inflows and bullish momentum in domestic equities as benchmark indices touched all-time highs.
| Photo Credit: Reuters
The rupee gained 33 paise to 81.77 against the U.S. dollar in early trade on July 3 supported by sustained foreign fund inflows and bullish momentum in domestic equities as benchmark indices touched all-time highs.
At the interbank foreign exchange, the domestic unit opened at 82.01 against the dollar and then rose to 81.77, registering a gain of 33 paise over its previous close.
On June 30, the rupee closed at 82.10 against the U.S. currency.
Forex traders said the rupee is trading on a positive note on significant foreign fund inflows and positive macro economic indicators.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the rupee is likely to trade in the range of 81.90 to 82.20 during the day.
“… Rupee looks to remain in the above range as Macro data from India comes out much better than most other countries. The GST figures, the core sector growth were all better than expected,” Mr. Bhansali said.
Foreign Portfolio Investors (FPIs) have pumped ₹47,148 crore into Indian equities in June, making it the highest inflow in 10 months.
According to official figures, GST collections crossed the ₹1.60 lakh crore mark for the fourth time since the roll-out of the indirect tax regime, rising 12% to over ₹1.61 lakh crore in June.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05% to 102.96.
Brent crude futures, the global oil benchmark, was trading 0.07% higher at $75.46 per barrel.
In the domestic equity market, the 30-share BSE Sensex advanced 385.17 points or 0.60% to touch an all-time high level of 65,103.73. The broader NSE Nifty also rose 112.35 points or 0.59% to a lifetime high of 19,301.40.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on June 30 as they purchased shares worth ₹6,397.13 crore, according to exchange data.