Rupee gains 21 paise to 81.97 against US dollar in early trade

The value of the rupee rose 21 pounds to 81.97 against the US dollar in early trading on Thursday, as a rise in local stocks and losses in the dollar against major competitors abroad boosted investor sentiment.

Besides, encouraging macroeconomic data supported the local currency, forex dealers said.

In the interbank foreign exchange market, the local unit opened sharply higher at 81.98 against the dollar and then rose slightly to 81.97, recording gains of EGP 21 from its previous close.

In initial trading, the local unit was moving in a narrow range from 81.95 to 81.99 against the greenback.

In the previous session on Wednesday, the rupee settled at 82.18 against the dollar.

while, Retail inflation rose to its highest level in three months 4.81 percent in June, mainly due to higher grain and pulse prices, although they remained within the Reserve Bank’s comfortable zone.

Indian industrial production rose to 5.2 percent in May from 4.5 percent in April 2023, mainly due to the good performance of the manufacturing and mining sectors, according to official data released on Wednesday.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.04 percent to 100.14.

Brent crude futures, the global oil benchmark, rose 0.49 percent to $80.50 a barrel.

in the local stock marketBSE Sensex was trading up 337.05 points, or 0.52 percent, at 65,730.95. NSE Nifty advanced 96.65 points, or 0.50 percent, to 19,480.95.

Foreign Institutional Investors (FIIs) emerged as net sellers in the capital markets on Wednesday selling shares worth Rs 1,242.44 crore, according to exchange data.