Currency Market News: Rupee gains 8 paise to 85.58 vs US dollar

Rupee appreciated by 8 paise to 85.58 against the US dollar in early trade on Tuesday, buoyed by a firm start in domestic equities and continued foreign capital inflows. However, the upside was capped by rising global crude oil prices and a firm US dollar overseas, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 85.62 and gained to 85.58, marking an 8-paise rise from Monday’s close of 85.66. On Monday, the rupee had settled 2 paise higher.

“The rupee is likely to trade within the range of 85.45–85.95 today. With markets awaiting cues from the ongoing US-China trade discussions, the local unit remains largely range-bound between 85 and 86, with daily fund flows dictating the movement,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Also Read:Currency Market News: Rupee halts two-day fall, ends 7 paise higher at 85.80 vs dollar 

Foreign institutional investors (FIIs) were net buyers on Monday, purchasing equities worth Rs 1,992.87 crore, as per stock exchange data.

“For today’s trade, importers may consider buying near 85.45, while exporters could look to sell above 85.80,” Bhansali added.

Also Read:First Trade: Nifty gains to 25,152 amid positive global cues; Coforge up over 2% 

Stock market snapshot

Indian equity benchmarks opened on a firm note tracking global cues. Nifty rose 0.19 per cent to 25,152 in early trade, while the Sensex advanced 0.18 per cent to 82,595.87. Broader markets outperformed, with smallcap and midcap indices rallying over 1 per cent.

Bank Nifty also edged higher by 0.46 per cent, led by gains in Kotak Mahindra Bank, Axis Bank, and AU Small Finance Bank.

On the global front, the US dollar remained steady as trade officials from the US and China worked to ease tensions. “Investors remain cautious, refraining from taking aggressive positions,” Bhansali noted.

The dollar index, which measures the greenback against six major currencies, was up 0.2 per cent at 99.13. Meanwhile, Brent crude futures climbed 0.33 per cent to $67.26 per barrel.

(With inputs from PTI)