Rupee Rises Against US Dollar In Early Trade After RBI's Forex Moves
The rupee appreciated 17 paise to 77.17 against the US dollar in opening trade on Wednesday as the greenback retreated from its elevated levels.
At the interbank foreign exchange, the Indian currency opened at 77.24 against the American dollar, then gained further to 77.17, registering a rise of 17 paise from previous close. In initial deals, the rupee also touched a low of 77.31 against the dollar.
"For the day, the market awaits the US CPI report which could give an indication as to where the prices could be topping. Domestic CPI numbers will also be released and expectations are 7.5-8%," said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors. "RBI was present on Tuesday selling dollars to ensure an orderly depreciation in the rupee."
On Tuesday, the rupee had settled at 77.34 against the American currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06% lower at 103.85.
Forex traders said muted domestic equities, firm crude oil prices and persistent foreign fund outflows could weigh on rupee and restrict its gain. Brent crude futures rose 1.83% to $104.34 per barrel.
Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 3,960.59 crore, according to stock exchange data.