Rupee rises 16 paise to 82.25 against US dollar

the rupee It rose 16 pounds to 82.25 against the US dollar in early trading on Wednesday as the weakness of the greenback in foreign markets and steady foreign money inflows boosted investor sentiment.

However, forex dealers said higher crude oil prices capped sharp domestic unit gains.

In the interbank foreign exchange market, the local unit opened at 82.29, then touched the highest level at 82.25 against the US currency, registering an increase of 16 pounds from its last close.

On Tuesday, the rupee settled at 82.41 against the dollar.

A weaker US dollar and continued inflows support the rupee, forex traders said, adding that strength in crude oil prices remains a concern for the rupee, as a sharp rise in prices could cap its gains.

The dollar index fell 0.30 percent to 101.42.

Brent crude futures rose 0.20 percent to $79.56 a barrel.

Traders said that investors were awaiting the release of key inflation data from the US and India for more clues.

On the local stock market, BSE Sensex was trading down 40.49 points, or 0.06 percent, at 65,658.33. NSE Nifty advanced 5.80 points, or 0.03 percent, to 19445.20.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday buying shares worth Rs 1,197.38 crore, according to exchange data.