Mumbai: The rupee rose 5 paise to 83.24 against the US dollar in early trade on Friday due to a strong sentiment in domestic equity markets and fall in crude oil prices overseas.
Forex traders said, however, a stronger US currency and unabated foreign capital outflows weighed on the local unit.
Also, he said market participants are expected to take cues from domestic macroeconomic data to be released today.
At the interbank foreign exchange market, the local unit opened at 83.25 and was trading at 83.24 against the greenback in early deals, registering a rise of 5 paise from its previous close.
On Thursday, the rupee closed at 83.29 against the US dollar with a rise of 11 paise.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.13 percent higher at 104.79.
The latest US GDP data released on Thursday showed the world's largest economy grew at a slower pace of 1.3 per cent in the January-March quarter than an estimated 1.6 per cent. This increased expectations of a cut in interest rates by the Federal Reserve.
Brent crude futures, the global oil benchmark, fell 0.38 percent to US$81.5 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 500.1 points or 0.68 per cent higher at 74,385.79. The broader NSE Nift rose 143.80 points, or 0.64 per cent, to 22,632.45 in early trade.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday, selling shares worth Rs 3,050.15 crore, according to exchange data.
Forex traders said, however, a stronger US currency and unabated foreign capital outflows weighed on the local unit.
Also, he said market participants are expected to take cues from domestic macroeconomic data to be released today.
At the interbank foreign exchange market, the local unit opened at 83.25 and was trading at 83.24 against the greenback in early deals, registering a rise of 5 paise from its previous close.
On Thursday, the rupee closed at 83.29 against the US dollar with a rise of 11 paise.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.13 percent higher at 104.79.
The latest US GDP data released on Thursday showed the world's largest economy grew at a slower pace of 1.3 per cent in the January-March quarter than an estimated 1.6 per cent. This increased expectations of a cut in interest rates by the Federal Reserve.
Brent crude futures, the global oil benchmark, fell 0.38 percent to US$81.5 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 500.1 points or 0.68 per cent higher at 74,385.79. The broader NSE Nift rose 143.80 points, or 0.64 per cent, to 22,632.45 in early trade.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday, selling shares worth Rs 3,050.15 crore, according to exchange data.
