Mumbai: The rupee recovered from lows and rose 7 paise to 83.44 against the US dollar in early trade on Wednesday, taking cues from lower crude oil prices in domestic equity markets and overseas.
Forex traders said value-buying rush led to a bullish trend in equity markets, boosting the local currency, which took a heavy beating after general election results on Tuesday showed the BJP-led NDA getting a smaller-than-expected majority. Decline was observed.
At the interbank foreign exchange market, the local unit opened at 83.50 and regained some lost ground to trade at 83.44 against the greenback, showing a rise of 7 paise from its previous close.
On Tuesday, the domestic currency closed at 83.51 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 percent higher at 104.14.
Global oil benchmark Brent crude futures slipped 0.03 per cent to US$77.50 a barrel.
In the domestic equity market, the 30-share BSE Sensex rose 172.89 points to 72,251.94 in early trade. NSE Nifty rose 39.25 points to 21,923.75.
Both the indices closed over 6 per cent lower on Tuesday amid fears of selling after counting of votes following a disappointing result for the BJP-led NDA in the Lok Sabha elections and the alliance facing defeat in its strongholds in the Hindi belt. Although it is expected to form a government with around 290 seats.
Foreign investors were net sellers of Indian equities on Monday as they sold shares worth Rs 12,436.22 crore on a net basis. FIIs bought shares worth Rs 26,776.17 crore and sold equities worth Rs 39,212.39 crore in the cash segment.
Forex traders said value-buying rush led to a bullish trend in equity markets, boosting the local currency, which took a heavy beating after general election results on Tuesday showed the BJP-led NDA getting a smaller-than-expected majority. Decline was observed.
At the interbank foreign exchange market, the local unit opened at 83.50 and regained some lost ground to trade at 83.44 against the greenback, showing a rise of 7 paise from its previous close.
On Tuesday, the domestic currency closed at 83.51 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 percent higher at 104.14.
Global oil benchmark Brent crude futures slipped 0.03 per cent to US$77.50 a barrel.
In the domestic equity market, the 30-share BSE Sensex rose 172.89 points to 72,251.94 in early trade. NSE Nifty rose 39.25 points to 21,923.75.
Both the indices closed over 6 per cent lower on Tuesday amid fears of selling after counting of votes following a disappointing result for the BJP-led NDA in the Lok Sabha elections and the alliance facing defeat in its strongholds in the Hindi belt. Although it is expected to form a government with around 290 seats.
Foreign investors were net sellers of Indian equities on Monday as they sold shares worth Rs 12,436.22 crore on a net basis. FIIs bought shares worth Rs 26,776.17 crore and sold equities worth Rs 39,212.39 crore in the cash segment.
