Rupee Rises Against US Dollar: Key Factors

Mumbai, Feb 26 (PTI) The rupee rose 6 paise to 90.85 against the US dollar in early trade on Thursday on the back of a weaker greenback and FII inflows.

A positive start to the session at the domestic equity markets lent further support to the local unit while a rise in global crude oil prices, coupled with geopolitical uncertainties, capped sharp gains, according to forex traders.

At the interbank foreign exchange, the rupee opened at 90.86 against the greenback before inching up to 90.85, higher by 6 paise from its previous close.

The rupee stayed range-bound and settled with a gain of 4 paise at 90.91 against the US dollar on Wednesday.

"As the dollar index fell and Asian currencies gained today (Thursday) the rupee opened higher... A risk-on sentiment in the markets and RBI selling near 91.00 levels ensured yesterday (Wednesday) also that rupee is unable to cross 91.00 levels with FPIs being buyers of equity and sellers of dollars," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.


Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 per cent down at 97.57.

Brent crude, the global oil benchmark, rose 0.21 per cent to USD 71.00 per barrel in futures trade.

On the domestic equity market front, the Sensex climbed 303 points to 82,579.16 in early trade, while the Nifty rose 85.1 points to 25,567.60.

On Wednesday, foreign institutional investors purchased equities worth Rs 2,991.64 crore, according to exchange data. PTI TRB TRB DR

DR