Currency update: Rupee gains 1 paisa to 83.49 against US dollar

The rupee inched up one paisa at 83.49 (provisional) against the US dollar on Tuesday as gains from strong domestic equities and sliding global crude prices were negated by a surging greenback overseas.

At the interbank foreign exchange market, the rupee started slightly up at 83.49 and hit an intra-day high of 83.47 and a low of 83.51 against the American currency during the session.

It finally settled at 83.49 against the dollar, registering a gain of one paisa over the previous close. On Monday, the rupee settled at 83.50 against the US dollar.

"Indian rupee gained today on optimism as Nifty touched fresh all-time highs and fresh FII inflows. A decline in crude oil prices also supported the rupee. However, a positive US dollar capped sharp gains. The US dollar gained on weak Euro amid political uncertainty in France," Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 104.72.

Brent crude futures, the global oil benchmark, declined 0.66 per cent to USD 85.18 per barrel.In the domestic equity market, the 30-share BSE Sensex jumped 391.26 points or 0.49 per cent to close at 80,351.64. 

The broader NSE Nifty gained 112.65 points, or 0.46 per cent, to 24,433.20.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 60.98 crore, according to exchange data.