Rupee rises 12 paise to 94.72 against US dollar in early trade
Sliding crude oil prices and foreign fund inflows into domestic equities supported the Indian currency on Tuesday.
The rupee appreciated 12 paise to 94.72 against the US dollar in early trade on Tuesday, according to reports by The Economic Times, The Hindu and BusinessLine.
In the interbank foreign exchange market, the currency opened at 94.68 and strengthened to 94.60 before trading at 94.72. This follows a close of 94.84 on Monday, when the rupee fell 8 paise.
Forex traders said a strong US dollar ahead of the US midterm election kept investors cautious, which capped the gains of the Indian currency. Meanwhile, the dollar index traded at 101.65, up 0.03 per cent.
The appreciation was buoyed by lower Brent crude prices, which were trading lower by 0.01 per cent at USD 104.76 per barrel. Analysts attributed the easing of crude prices to talks between Iranian and Qatari officials regarding the West Asia war.
In the domestic equity market, the Sensex rose 551.77 points or 0.73 per cent to 76,244.55, while the Nifty climbed 129.60 points or 0.55 per cent to 23,570.40 in early trade.
Foreign Institutional Investors (FIIs) were net buyers for the second consecutive day on Monday, purchasing equities worth Rs 3,114.68 crore on a net basis, according to exchange data.