Rupee rises 4 paise to 82.87 against U.S. dollar in early trade

Rupee strengthens against dollar as foreign funds flow in, supported by positive equity market sentiment and weak USD.

The rupee appreciated 4 paise to 82.87 against the U.S. dollar in early trade on Monday, amid a weak American currency against major rivals overseas and inflow of foreign funds in the domestic capital markets.

A positive sentiment in the equity markets supported the rupee, though the local unit was weighed down by an upward movement in the crude oil prices, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 82.86 and slipped further to trade at 82.87 against the greenback, registering a gain of 4 paise from its previous close.

On Friday, the rupee settled 2 paise lower at 82.91 against the U.S. dollar.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said, the rupee gained primarily as the dollar fell against major crosses and also supported by better-than-expected GDP data on the domestic front.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.01% to 103.79.

Mr. Somaiya said the dollar index started the month on a weaker note after the US data showed that the manufacturing PMI dropped to 47.8 from 49.1 in January.