However, surging crude prices in the international market and unabated foreign capital outflows capped the rupee’s rise, traders said.
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The rupee appreciated 15 paise to 75.30 against the US dollar in opening trade on Tuesday, as a rally in domestic equities and weak American currency in the overseas markets boosted investor sentiments.
However, surging crude prices in the international market and unabated foreign capital outflows capped the rupee’s rise, traders said.
At the interbank foreign exchange, the rupee opened strong at 75.31 and inched up to quote 75.30 against the American dollar in early deals, registering a rise of 15 paise from the last close.
In the previous session, the rupee had settled at 75.45 against the greenback. On the domestic equity market front, the 30-share Sensex was trading 621.19 points or 1.09 per cent higher at 57,368.33, while the broader NSE Nifty advanced 190.00 points or 1.12 per cent to 17,102.25.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 per cent to 96.24. Global oil benchmark Brent crude futures rose 0.74 per cent to USD 73.62 per barrel.
Foreign institutional investors remained net sellers in the capital market on Monday, as they offloaded shares worth Rs 3,361.28 crore, as per exchange data.
Meanwhile, Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-COVID levels.
(With PTI inputs)
