Rupee rises 4 paise to 81.87 against US dollar

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the rupee It gained 4 pips to 81.87 against the US dollar in early trading on Tuesday, supported by the bullish trend in local markets and steady foreign money inflows.

However, forex dealers said a stronger US dollar and higher crude oil prices capped sharp domestic unit gains.

In the foreign exchange market between banks, the local unit opened at 81.90 against the dollar and then rose to 81.87, recording gains of 4 pounds from its previous close, as the benchmark indices touched their highest levels ever.

In initial trading, the rupee also touched a low of 81.95 against the greenback.

On Monday, the rupee closed at 81.91 against the greenback.

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Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.03 percent to 103.01.

Brent crude futures, the global oil benchmark, advanced 0.63 percent to $75.12 a barrel.

Traders further said that the direction of the rupee is likely to be affected by the release of the FOMC meeting minutes on Wednesday.

“Given the resilience in the labor and housing market along with growth, the Fed will maintain its intended hiking path despite shifting market opinions after each data release,” said CR Forex Advisors MD-Amit Babari.

Pabari further said that DXY will remain supported around 102 levels. US markets are closed on Tuesday due to Independence Day, and volatility is likely to be subdued.

In the local stock market, the Benchmarks are at an all-time high. BSE Sensex, which includes 30 shares, advanced 176.73 points, or 0.27 percent, to 65,381.78 points. The broader NSE Nifty index rose 32.90 points, or 0.17 percent, to 19,355.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday buying shares worth Rs 1,995.92 crore, according to exchange data.