Rupee Gains 1 Paisa Against US Dollar - 5th Straight Day

Mumbai, Jan 9 (PTI) The rupee on Tuesday closed marginally up by 1 paisa at 83.13 against the US dollar, advancing its gains for the fifth straight session, tracking positive domestic equities.

Lower crude oil prices in the international market also supported the domestic unit, forex traders said.

At the interbank foreign exchange market, the local unit opened strong at 83.07 and traded between the peak of 83.04 and the lowest level of 83.13 against the greenback during the session.

It finally settled at 83.13 against the dollar, registering a gain of 1 paisa from its previous close.

The domestic currency settled 1 paisa higher at 83.14 on Monday, a day after gaining 9 paise.

Jateen Trivedi, VP Research Analyst at LKP Securities, said the weakness in the dollar and a significant decline in crude prices over the last 24 hours contributed to the rupee's positive movement.

"However, the rupee faced some weakness after reaching highs of 83.04, likely influenced by the overall market scenario. The upcoming focus is on the US CPI data on Thursday and India's CPI data on Friday. Expectations are on the higher side, which could keep the US dollar prices elevated," Trivedi added.

Analysts said investors will keep a close watch on domestic inflation numbers and the data from the US to be released later this week.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent higher at 102.10 on Tuesday.

Brent crude futures, the global oil benchmark, rose 1.50 per cent to USD 77.26 per barrel.

On the domestic equity market front, Sensex rose 30.99 points, or 0.04 per cent, to settle at 71,386.21 points. The Nifty advanced 31.85 points, or 0.15 per cent, to 21,544.85 points.

Exchange data showed that foreign institutional investors (FIIs) sold shares worth Rs 990.90 crore on Tuesday.