Rupee edges up 3 paise to 82.40 against dollar in early trade

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The rupee gained 3 pounds to reach 82.40 against the US dollar in early trading on Tuesday, supported by positive macroeconomic data and a strong trend in local stocks.

The rupee is trading in a narrow range against the greenback as investors await cues from the release of US inflation data that may influence the Federal Open Market Committee (FOMC) policy stance.

In the interbank foreign exchange market, the local unit opened at 82.42 against the dollar and then rose to 82.40, recording a profit of 3 pounds from its previous close.

In initial trading, the rupee touched a low of 82.46 against the US currency.

On Monday, the rupee closed at 82.43 against the greenback.

On the domestic macro front, retail inflation fell to a 25-month low of 4.25 percent in May, mainly due to lower food and fuel prices.

India’s industrial production growth rose to 4.2 percent in April from 1.7 percent in March 2023, mainly due to the good performance of the manufacturing and mining sectors, according to official data released on Monday.

“Domestically, India’s latest CPI prints are at a 25-month low, along with robust industrial production, expansionary manufacturing and service activity, giving the RBI some breathing room to keep interest rate stable for the next meeting,” CR Forex Advisors said the general manager, Amit Babari.

Traders said investors will remain vigilant as the start of the late monsoon season may affect food price inflation in the time ahead.

Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.20 percent to 103.44.

Brent crude futures, the global oil benchmark, advanced 0.71 percent to $72.35 a barrel.

In the local stock market, the 30-share BSE Sensex advanced 328.13 points, or 0.52 percent, to 63,052.84. The broader NSE Nifty index rose 92.35 points, or 0.5 percent, to 18,693.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday, unloading shares worth Rs 626.62 crore, according to exchange data.