Rupee rises 6 paise to 83.37 against U.S. dollar in early trade
The Hindu
Rupee strengthens against the dollar amid higher crude oil prices and hawkish U.S. Federal Reserve stance.
The rupee stayed on the upward track for the second straight session and appreciated 6 paise to 83.37 against the U.S. dollar in early trade on Wednesday boosted by sustained inflow of foreign capital and firm equity markets.
The local unit, however, faced resistance due to a stronger American currency and higher crude oil prices overseas, forex traders said.
At the interbank foreign exchange market, the local unit opened strong at 83.39 and gained further to 83.34 against the greenback in initial deals. It later traded at 83.37 against the American currency, registering a rise of 6 paise from its previous close.
On Tuesday, the rupee had settled 12 paise higher at 83.43 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally higher by 0.02% at 104.90.
Analysts said the dollar index fell initially as the U.S. data showed the growth in retail sales was lower than expected, though the currency recovered with May industrial output numbers topping the forecast.
Officials of the U.S. Federal Reserve indicated a hawkish stance to continue, dousing hopes of an interest rate cut until December.