Rupee Gains 7 Paise, Reaches 83.48 Against US Dollar in Early Trade

Mumbai, Jun 18 – The rupee appreciated by 7 paise to 83.48 against the US dollar in early trade on Tuesday, supported by fresh inflows of foreign capital and positive sentiment in the domestic equity markets. Forex traders noted that while the strengthening American currency exerted some pressure on the local unit, it was buoyed by a downward movement in crude oil prices overseas. The rupee opened at 83.52 at the interbank foreign exchange market and gained further to 83.48 against the greenback, marking a 7 paise increase from its previous close. On Friday, the rupee had settled 1 paisa lower at 83.55 against the US dollar. Forex markets were closed on Monday due to Bakri Id. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.07 percent at 105.01. Brent crude futures, the global oil benchmark, declined by 0.13 percent to USD 84.14 per barrel. In the domestic equity market, the 30-share BSE Sensex rose by 175.72 points, or 0.23 percent, to 77,168.49 points. The broader NSE Nifty climbed 45.15 points, or 0.19 percent, to 23,510.75 points. According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, purchasing shares worth Rs 2,175.86 crore. Positive investor sentiment was driven by strong domestic macroeconomic data, which showed India’s merchandise exports in May 2024 rose 9 percent to USD 38.13 billion. The trade deficit, or the gap between imports and exports, during the month stood at USD 23.78 billion. Additionally, wholesale inflation increased for the third consecutive month in May to 2.61 percent, due to rising prices of food articles, especially vegetables, and manufactured items.