The rupee on Tuesday advanced 7 paise to 79.84 against the US dollar in early trade in line with a positive trend in domestic equities.
However, higher oil prices and month-end dollar demand could limit gains for the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 79.92 against the US dollar and touched 79.84 in opening deals, registering a gain of 7 paise over its previous close.
On Monday, the rupee had closed at 79.91 against the US dollar. According to experts, the rupee opened on a flat note after Monday’s volatile session in which the RBI intervened to support the currency amid a fall in equities and a rise in the dollar index. Asian currencies are generally down as markets digested US Federal Reserve chief Jerome Powell’s bullish tone on interest rates on Friday.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 108.76. Global oil benchmark Brent crude futures fell 0.77 per cent to $104.28 per barrel. On the domestic equities front, the 30-share Sensex was trading 485.2 points or 0.84 per cent higher at 58,457.82 points, while the broader NSE Nifty rose 154.10 points or 0.89 per cent to 17,467.00.
Foreign institutional investors were net sell-offs in the capital markets on Monday, selling shares worth Rs 561.22 crore, according to exchange data.
Read also: Rupee closes 6 paise higher at 79.86 against US dollar
Read also: Rupee falls 7 paise to close at 79.93 against US dollar