Rupee edges up 5 paise against US dollar in early trade

The rupee appreciated by 5 paise to 83.11 against the US dollar in early trade on Wednesday, tracking a weak America currency and softening crude oil prices in the overseas market.

Some buying by foreign equity investors supported the Indian currency, even though it was pressured by subdued sentiment in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened stronger by 8 paise at 83.08 and then touched the lowest level of 83.11 against the greenback, registering a gain of 5 paise from its previous close.

On Monday, the rupee closed 4 paise lower at 83.16 against the US dollar. Forex markets were closed on Tuesday on account of Dussehra.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said the dollar fell against its major crosses after US yields retracted from its record level.

He said the USD-INR (spot) is expected to “trade sideways with a negative bias and quote in the range of 82.80 and 83.20”.

“Market participants will now keep an eye on US GDP data that is due tomorrow and could trigger more wild swings in bond yields and currency markets. The euro and pound fell in yesterday’s session after preliminary manufacturing data came in below estimates,” Somaiya added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 106.18.

Global oil price benchmark Brent crude inched up 0.05 per cent to $88.11 per barrel.

On the domestic equity market front, Sensex fell 48.16 points or 0.06 per cent to 64,530.02 points, while the broader Nifty was down 11.20 points or 0.06 per cent at 19,270.55 points.

Foreign Institutional Investors bought equities worth Rs 252.25 crore on Monday, according to exchange data.