Rupee rises 11 paise to 82.20 against US dollar in early trade

The rupee rose 11 pounds to 82.20 against the US dollar in early trading on Tuesday, supported by continued foreign money inflows.

Forex traders said the weak trend in local stocks and the strength of the US currency in overseas markets affected investor sentiment.

In the interbank foreign exchange market, the local unit opened at 82.22 against the dollar and then rose to 82.20, recording gains of 11 pounds from its previous close.

On Monday, the rupee closed at 82.31 against the greenback.

Meanwhile, the dollar index fell 0.06 percent to 102.37.

Brent crude futures, the global oil benchmark, fell 0.51 percent to $75.61 a barrel.

“Going forward, higher oil prices could remain a concern for the domestic unit as the US begins to refill its Strategic Reserve and confirmed purchases of up to 3 million barrels of oil for the SPR,” Amit Babari CR told Forex Advisors.

Babari added: “The rise of the US dollar, oil, and the weakness of emerging market currencies clears the way for the US dollar pair against the Indian rupee to move above the levels of 82.50 – 82.80 in the next 15 to 20 sessions.”

foreign institutional investors (FIIs) were net buyers in the capital market on Monday buying shares worth Rs 1,685.29 crore, according to exchange data.

in the local stock market, BSE Sensex fell by 19.76 points or 0.03 percent to 62325.95. NSE Nifty fell 1.55 points, or 0.01 percent, to 18,397.30.

while, India’s exports shrank by 12.7 percentGovernment data on Monday showed that, for the third consecutive month, it came in at $34.66 billion in April even as the trade deficit fell to a 20-month low of $15.24 billion.