Rupee surges 27 paise to 74.19 against US dollar in early trade

The rupee surged 27 paise to 74.19 against the US dollar in opening trade on Monday supported by dovish central banks.

At the interbank foreign exchange, the rupee opened strong at 74.25 against the dollar and gained further ground to 74.19 in early deals, a rise of 27 paise over its previous close.

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On Thursday, the rupee had settled at 74.46 against the US dollar.

The forex market was closed on Friday for 'Diwali Balipratipada'.

The Indian Rupee opened stronger this Monday supported by dovish central banks, Reliance Securities said in a research note.

Fed Chair Jerome Powell said he was in no rush to hike borrowing costs, as there was still ground to cover to reach maximum employment. The central bank did announce a USD 15 billion monthly tapering of its USD 120 billion in monthly asset purchases.

Additionally, flows into the market could also lend support. However, the Reserve Bank of India's presence could cap the appreciation bias, the note said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.01 per cent to 94.31.

Global oil benchmark Brent crude futures rose 1.02 per cent to USD 83.58 per barrel.

On the domestic equity market front, BSE Sensex was trading 221.26 points or 0.37 per cent lower at 59,846.36, while the broader NSE Nifty declined 56.75 points or 0.32 per cent to 17,860.05.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 328.11 crore, as per exchange data.