Rupee surges 15 paise to 73.48 against the US dollar in early trade

Indian rupee banknotes

The rupee appreciated 15 paise to 73.48 against the US dollar in opening trade on Wednesday as sustained foreign fund inflows and hectic buying domestic equities strengthened investor sentiment.

Traders said the weakness of the American currency in the overseas market also supported the domestic unit.

At the interbank forex market, the domestic unit opened at 73.49 against the greenback, then inched higher to touch 73.48, registering a rise of 15 paise over its previous close.

On Tuesday, the Indian rupee depreciated by 8 paise to settle at 73.63 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 90.44.

"The US dollar continued to struggle near the 2-year lows as risk appetite improved supported by vaccine roll-out expansion and hopes of passage of a massive US stimulus aid this week," Reliance Securities said in a research note.

Traders said some depreciation can be expected during the day as market participants await the conclusion of the US Fed meeting.

"Asian currencies were weak this Wednesday morning and could cap gains for the domestic unit," Reliance Securities said adding that "additionally, the Reserve Bank could be present in the markets to cap gains".

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 274.76 points higher at 46,537.93, and the broader NSE Nifty advanced 75 points to 13,642.85.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 2,484.09 crore on a net basis on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, fell 0.22 per cent to USD 50.65 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.)

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