Mumbai: The rupee gained 11 paise to 82.01 against the US dollar in early trade Wednesday tracking a positive trend in domestic equities and foreign fund inflows.
Forex traders said investors are focusing on India’s CPI data scheduled to be released later in the day.
At the interbank foreign exchange, the domestic unit opened at 82.08 against the dollar, then climbed to 82.01, registering a rise of 11 paise over its previous close.
On Tuesday, the rupee closed at 82.12 against the US currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11 per cent to 102.08.
Brent crude futures, the global oil benchmark, advanced 0.04 per cent to USD 85.64 per barrel.
“The market will be focusing on India’s CPI data, which is expected to come at 5.80 per cent vs the previous 6.44 per cent,” CR Forex Advisors MD-Amit Pabari said.
However, falling inflation will push the RBI to pivot on the interest rate hike cycle, which could hurt the rupee going forward due to the narrowing interest rate differential between the US and India, Pabari added.
In the domestic equity market, the 30-share BSE Sensex advanced 74.07 points or 0.12 per cent to 60,231.79. The broader NSE Nifty gained 37.45 points or 0.21 per cent to 17,759.75.
Foreign Institutional Investors (FIIs) were net buyers in the capital market Tuesday as they purchased shares worth Rs 342.84 crore, according to exchange data.