Rupee gains 8 paise to 81.66 against US dollar in early trade

The rupee gained 8 paise to 81.66 against the US dollar in early trade on Thursday, April 27, due to weak American currency in the overseas market. On Wednesday, April 26, the rupee settled at 81.74 against the dollar. Forex traders said a positive trend in domestic equities, foreign fund inflows and crude oil prices below USD 80 a barrel also supported the local unit.

At the interbank foreign exchange, the domestic unit opened at 81.69 against the dollar and then climbed to 81.66, registering a rise of 5 paise over its previous close.

The dollar index — which gauges the dollar against six currencies other than the rupee — was last seen trading 0.07 per cent lower at 101.40. The index compares the dollar to the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc, and the euro.

Brent crude futures, the global oil benchmark, advanced 0.48 per cent to USD 78.06 per barrel.

"The rupee is expected to trade in the narrow range of 81.70-82.30 levels as mixed economic data and a fragile geo-political environment are likely to increase volatility, and following a risk-management policy would be suitable this time," CR Forex Advisors MD Amit Pabari said.

In the domestic equity market, the 30-share BSE Sensex advanced 38.68 points or 0.06 per cent to 60,339.26 points. The broader NSE Nifty gained 5.45 points or 0.03 per cent to 17,819.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they offloaded shares worth Rs 1,257.48 crore, according to exchange data.

With PTI inputs