Rupee rises 6 paise to 82.54 against US dollar

The rupee gained 6 paise to 82.54 against the US dollar in early trade on Monday, tracking positive trends in domestic and global markets as well as inflows of foreign funds. The dollar index is trading almost flat at 104 level with forex traders awaiting an agreement on the US debt ceiling between US President Joe Biden and Republican House Speaker Kevin McCarthy.

At the interbank foreign exchange, the domestic unit opened stronger at 82.57 against the dollar and hit the highest level of 82.51. Later, it slipped to 82.54, registering a gain of 6 paise over its previous close.

On Friday, the rupee closed at 82.60 against the US currency.

Anand James, Chief Market Strategist at Geojit Financial Services, said in his rupee outlook that the Indian currency is likely to reach the level of 82.25 against the US currency.

"Inability to float above 82.70 has elevated the risk of revisit of 82.45. Breach of the same may expose 82.2. Until this holds, we may pull back into the sideways trend. Breach of the same, however, could seriously threaten the prospects of an upside breakout beyond 83.25, which has been brewing for a fortnight," James said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 104.18.

Brent crude futures, the global oil benchmark, rose 0.69 per cent to USD 77.48 per barrel.

In the domestic equity market, the 30-share BSE Sensex advanced 482.62 points or 0.77 per cent to 62,984.31. The broader NSE Nifty rose 134.05 points or 0.72 per cent to 18,633.40.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Friday as they purchased shares worth Rs 350.15 crore, according to exchange data.