Rupee rises 2 paise to 83.49 against U.S. dollar in early trade
The Hindu
Rupee strengthens 2 paise to 83.49 against dollar on July 11, supported by equities, despite high oil prices.
The rupee traded in a narrow range and appreciated 2 paise to 83.49 against the U.S. dollar in early trade on July 11, as a positive trend in domestic equities supported the local unit, while elevated crude oil prices weighed on investor sentiments.
At the interbank foreign exchange market, the local unit opened at 83.49, registering a rise of 2 paise from its previous close.
On July 10, the rupee stayed range-bound and settled 2 paise lower at 83.51 against the U.S. dollar.
"Persistent demand for the dollar from local importers has capped the rupee's potential gains, yet its outlook remains optimistic, buoyed by recent positive economic indicators," CR Forex Advisors MD-Amit Pabari said.
Mr. Pabari further said the rupee's outlook is supported by strong foreign inflows, a positive economic forecast, and India's impressive macroeconomic growth, currently the fastest among large economies.
The Reserve Bank of India (RBI) appears determined to prevent the rupee from depreciating below 83.70, despite pressure from oil companies due to elevated oil prices, he added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 104.93, lower by 0.11 per cent.