Mumbai: The rupee appreciated by 24 paise to 82.08 against the US currency in early trade Wednesday due to a weak dollar in overseas markets and forex inflows.
At the interbank foreign exchange market, the rupee opened higher at 82.08 against the US dollar and moved in a narrow range of 82.04 to 82.10 later in early deals.
The local unit was trading at 82.08 to a dollar at 9.35 AM. It closed at 82.32 Monday. Forex markets were closed Tuesday for Mahavir Jayanti.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.03 per cent to 101.56 after a weak set of economic data bolstered expectations of the end of US Fed rate hike cycle.
Oil prices also moved in a narrow range in early Asian trade Wednesday as weak US economic data weighed on the demand scenario despite a surprise production announced by oil cartel OPEC and its allies.
Back home, investors are likely to remain cautious ahead of RBI’s monetary policy decision. RBI’s rate-setting panel Monday started its three-day meeting amid expectations that the central bank may go for a 25 basis points hike in benchmark interest rate, probably the last in the current monetary tightening cycle that began in May 2022.
The 30-share BSE Sensex rose by 240 points or 0.41 per cent to 59,346.52 while the broader NSE Nifty advanced 61.20 points or 0.35 per cent to 17,459.25.
Foreign Institutional Investors (FIIs) were net buyers in the capital market Monday as they purchased shares worth Rs 321.93 crore, according to exchange data.