Mumbai: The rupee rose 5 paise to 83.54 against the US dollar in early trade on Wednesday amid positive sentiment in the domestic equity market.
Forex traders said the rupee is trading in a tight range as all eyes are on the US May CPI print and Fed rate decision on the global front and India's Consumer Price Index (CPI) on the domestic front.
Besides, strengthening of the US currency and higher crude oil prices in the overseas market put pressure on the local unit and limited the upside.
At the interbank foreign exchange market, the local unit opened at 83.56 and proceeded to trade at 83.54 against the greenback in early deals, registering a rise of 5 paise from its previous close.
On Tuesday, the rupee closed 9 paise down at 83.59 against the US dollar."The Indian rupee remains stable despite a strong US dollar on rising US bond yields and low expectations of a Fed rate cut following strong US employment data," said Amit Pabari, MD, CR Forex Advisors.
Pabari further said that decline in fiscal deficit, strong growth and reduction in political uncertainties after Narendra Modi's coalition government took charge have provided some support to the rupee.
"Armed with ample reserves of US$651 billion, the Reserve Bank of India is ready to intervene to prevent a significant fall of the rupee," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 percent higher at 105.25.
Global oil benchmark Brent crude futures rose 0.41 percent to US$82.26 per barrel.In the domestic equity market, the 30-share BSE Sensex was trading 269.20 points or 0.35 per cent higher at 76,725.79. The broader NSE Nifty rose 92.60 points, or 0.4 percent, to 23,357.45 in early trade.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, as they sold shares worth Rs 111.04 crore, according to exchange data.
Forex traders said the rupee is trading in a tight range as all eyes are on the US May CPI print and Fed rate decision on the global front and India's Consumer Price Index (CPI) on the domestic front.
Besides, strengthening of the US currency and higher crude oil prices in the overseas market put pressure on the local unit and limited the upside.
At the interbank foreign exchange market, the local unit opened at 83.56 and proceeded to trade at 83.54 against the greenback in early deals, registering a rise of 5 paise from its previous close.
On Tuesday, the rupee closed 9 paise down at 83.59 against the US dollar."The Indian rupee remains stable despite a strong US dollar on rising US bond yields and low expectations of a Fed rate cut following strong US employment data," said Amit Pabari, MD, CR Forex Advisors.
Pabari further said that decline in fiscal deficit, strong growth and reduction in political uncertainties after Narendra Modi's coalition government took charge have provided some support to the rupee.
"Armed with ample reserves of US$651 billion, the Reserve Bank of India is ready to intervene to prevent a significant fall of the rupee," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 percent higher at 105.25.
Global oil benchmark Brent crude futures rose 0.41 percent to US$82.26 per barrel.In the domestic equity market, the 30-share BSE Sensex was trading 269.20 points or 0.35 per cent higher at 76,725.79. The broader NSE Nifty rose 92.60 points, or 0.4 percent, to 23,357.45 in early trade.
Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, as they sold shares worth Rs 111.04 crore, according to exchange data.
