Finance
The rupee rose 17 paise to 77.17 against the US dollar in early trade on Wednesday, as the US currency retreated from recent highs.
The rupee opened at 77.24 against the US dollar on the interbank foreign exchange, then gained ground to quote at 77.17, a 17-paise increase from the previous close. In early trading, the rupee fell to 77.31 against the dollar.
“For the day, the market awaits the US CPI report which could give an indication as to where the prices could be topping. Domestic CPI numbers will also be released and expectations are between 7.5 to 8 per cent. RBI was present on Tuesday selling dollars to ensure an orderly depreciation in the rupee,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
The rupee had settled at 77.34 against the US dollar on Tuesday.
The dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.06 percent lower at 103.85.
Forex traders said the rupee’s gains could be hampered by weak domestic equities, firm crude oil prices, and persistent foreign fund outflows.
The 30-share Sensex was trading 27.61 points, or 0.05 percent, higher at 54,392.46, while the broader NSE Nifty was up 8.30 points, or 0.05 percent, at 16,248.35.
Brent crude futures rose 1.83 percent to USD 104.34 per barrel, the global oil benchmark.
According to stock exchange data, foreign institutional investors were net sellers in the capital market on Tuesday, offloading shares worth Rs 3,960.59 crore.
Source:BS
