Rupee rises 4 paise to 83.06 against U.S. dollar in early trade

Rupee strengthens against dollar on positive equities trend, supported by weak American currency and high forex reserves.

The rupee appreciated by 4 paise to 83.06 against the U.S. dollar on May 27, tracking a positive trend in domestic equities, wherein benchmark indices scaled new peaks.

Forex traders said the weakness of the American currency in the overseas market supported the rupee, while elevated crude oil prices in the international market restricted the upmove.

At the interbank foreign exchange market, the local unit opened at 83.08 and gained further ground to trade at 83.06 against the greenback, registering a gain of 4 paise from its previous closing level.

On Friday, the rupee rallied for the fourth consecutive trading session and settled with a sharp gain of 19 paise at 83.10 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 104.70, lower by 0.02%.

Brent crude futures, the global oil benchmark, advanced 0.19% to $82.28 per barrel.

On the domestic macroeconomic front, India's forex reserves jumped $4.549 billion to a new all-time high of $648.7 billion for the week ended May 17, the Reserve Bank said on Friday.