Rupee surges 38 paise to 83.04 against U.S. dollar in early trade

The rupee surged 38 paise to hit its three-month high level of 83.04 against the U.S. dollar in early trade on June 2 boosted by a robust sentiment in domestic equity markets on the back of strong macroeconomic data and exit poll results showing a third term for Modi government

The rupee surged 38 paise to hit its three-month high level of 83.04 against the U.S. dollar in early trade on June 2 boosted by a robust sentiment in domestic equity markets on the back of strong macroeconomic data and exit poll results showing a third term for the Prime Minister Narendra Modi-led government.

A weak American currency and inflow of foreign capital into domestic equities also supported the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.09 and gained further to trade at 83.04 against the greenback in initial deals, registering an increase of 38 paise from its previous close. The rupee had breached the 83.00 level on March 18 this year.

The local unit clocked the highest single-day rise since April 2023 when it appreciated by 42 paise.

On Friday, the rupee declined 13 paise to close at 83.42 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06% lower at 104.56.

Brent crude futures, the global oil benchmark, fell 0.06% to $81.06 per barrel.