Rupee rises eight paise to 82.99 against U.S. dollar in early trade

On February 9, the domestic currency settled at 83.07 against the dollar.  | Photo Credit: The Hindu

The Rupee appreciated eight paise to 82.99 against the U.S. dollar in early trade on February 12, amid weakness of the American currency in the overseas market.

At the interbank foreign exchange, the domestic currency opened at 83.01, then touched 82.99 against the greenback in initial deals, registering a rise of eight paise from its previous close. On February 9, the domestic currency settled at 83.07 against the dollar. Investors are now awaiting the U.S. inflation data on Tuesday for further cues.

"If the inflation prints releases lower than expected, the dollar index is likely to correct towards 102.50 levels which will push the Rupee stronger. On the flip side, if released stronger, the upside potential for DXY (U.S. Dollar Index) is up to 105 levels, but USD-INR is not likely to breach past 83.25 levels on the upside," CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07% lower at 104.03.

Brent crude futures, the global oil benchmark, declined 0.51% to $81.77 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 140.34 points or 0.20% lower at 71,454.25. The broader NSE Nifty declined 39.35 points or 0.18% to 21,743.15.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth ₹141.95 crore, according to exchange data.

Meanwhile, India's forex reserves jumped by $5.736 billion to $622.469 billion for the week ended February 2, the Reserve Bank said on Friday. In the previous week, the overall reserves had increased by $591 million to $616.733 billion.