Rupee rises 6 paise against US dollar in early trade

An RBI article has said India is better placed than many other countries to avoid the risks of potential stagflation with recovery broadly on track, notwithstanding an increasingly hostile external environment.

The rupee strengthened by 6 paise to 78.04 against the US dollar in opening trade on Friday as easing crude oil prices supported the local unit.

However, unabated foreign fund outflows, a lacklustre trend in domestic equities and strong American dollar overseas restricted the gain, forex dealers said.

At the interbank foreign exchange, the rupee opened strong at 78.03 against the US dollar, then inched lower to quote 78.04, registering a rise of 6 paise over the last close.

In the previous session, the rupee had closed at 78.10 against the US dollar.

On the domestic equity market front, the 30-share Sensex was trading 251.06 points or 0.49% lower at 51,244.73, while the broader NSE Nifty fell 90.15 points or 0.59 % to 15,270.45.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.60% to 104.25.