Rupee gains 1 paisa to 84.06 against US dollar in early trade

The rupee showed a recovery from its lower level and gained marginally by 1 paisa to 84.06 against the US dollar in early trade on Monday, tracking positive cues from domestic equity markets and a soft American currency.

However, sustained outflow of foreign funds and an upward momentum in the crude oil prices weighed on the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and stayed almost flat in early deals, trading 1 paisa higher from its previous close.

On Friday, the rupee slipped 1 paisa to close at 84.07 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down by 0.05 per cent to 103.25.

Brent crude, the international benchmark, advanced 0.33 per cent to USD 73.30 per barrel in futures trade. On the domestic equity market front, Sensex surged 457.90 points, or 0.56 per cent, to 81,682.65 points. The Nifty also climbed 97.70 points, or 0.39 per cent, to 24,951.75 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs 5,485.70 crore, according to exchange data.

According to RBI data released on Friday, India's forex reserves declined by USD 10.746 billion to USD 690.43 billion for the week ended October 11. In the preceding week, the reserves had dropped by USD 3.709 billion to USD 701.176 billion.