Rupee surges 7 paise to 74.26 against US dollar in early trade

Topics Rupee | US Dollar | Currency

The rupee appreciated 7 paise to 74.26 against the US dollar in early trade on Wednesday supported by foreign fund inflows and optimism surrounding trade the deal between the US and China.

The local unit opened at 74.34 against the US dollar, then gained ground and touched 74.26, up 7 paise over its previous close, even as the domestic equity market was trading in the negative territory.

The local unit had settled at 74.33 against the American currency on Tuesday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.11 per cent to 93.12.

"Investors will closely monitor the yuan to see if the Chinese currency continues to appreciate against the US dollar amid a wave of optimism after Washington and Beijing affirmed their trade deal," Reliance Securities said in a research note.

Asian currencies have started stronger against the US dollar this morning and could lend support, it added.

Meanwhile, foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,481.20 crore on Tuesday, according to provisional exchange data.

The 30-share BSE benchmark Sensex was trading 61.19 points lower at 38,782.69 and the broader NSE Nifty fell 4.65 points to 11,467.60.

Brent crude futures, the global oil benchmark, rose 0.35 per cent to USD 46.02 per barrel.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel