Rupee rises 5 paise to 83.05 against U.S. dollar

Rupee appreciates 5 paise to 83.05 vs US$ in early trade on Mon, tracking positive trend in domestic equities. Dollar index rises 0.02% to 103.39. Rising uncertainty in China & better-than-expected US economic numbers weigh on rupee. FIIs net sellers in capital markets, forex reserves up $708m to $602.161bn.

The rupee recovered from its all-time low levels and appreciated by 5 paise to 83.05 against the U.S. dollar in early trade on Monday tracking a positive trend in domestic equities.

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and a rising U.S. dollar.

At the interbank foreign exchange, the domestic unit opened at 83.10, then touched a high of 83.05 against the American currency, registering a rise of 5 paise over its last close.

On Friday, the rupee edged lower by 1 paisa to settle at an all-time low of 83.10 against the U.S. dollar, weighed down by a negative trend in domestic equities, and foreign fund outflows.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.02% to 103.39.

Dollar witnessed its longest winning streak in the last 15 months following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the U.S., said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services.

Rising uncertainty over economic recovery in China is leading to weakness in the Chinese Yuan and thereby weighing on the rupee, Somaiya added.