Rupee jumps 77 paise to ₹83.77 against US dollar in early trade

The rupee appreciated 77 paise to ₹83.77 against the US dollar in early trade on Friday, supported by sustained foreign fund inflows and stronger domestic data.

Forex traders said GST collections for April were robust at ₹2.37 lakh crore, an all-time high, reflecting the health of domestic demand. Moreover, a positive trend in domestic equities driven by foreign fund inflows further boosted sentiments.

However, caution lingers, as they noted any escalation in tensions between India and Pakistan could swiftly reverse gains and pressurise the rupee, much like past geopolitical episodes.

At the interbank foreign exchange, the domestic unit opened at ₹83.98 against the greenback, then gained ground and touched ₹83.77, registering a gain of 77 paise over its previous close.

On Wednesday, the rupee surged 42 paise to ₹84.54 against the US dollar.

The forex market was closed on Thursday on account of Maharashtra Day.

On the domestic macroeconomic front, Goods and Services Tax (GST) collection rose 12.6% Y-o-Y to an all-time high of about ₹2.37 lakh crore in April, which the government said shows the resilience of the Indian economy and the effectiveness of cooperative federalism.

The gross GST mop-up was ₹2.10 lakh crore in April 2024 - the second-highest collection ever since GST was rolled out on July 1, 2017. The net mop-up was ₹1.92 lakh crore.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.27% at 99.97.

Brent crude, the global oil benchmark, rose 0.55% to USD 62.45 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 722.82 points or 0.90% to 80,965.06, while the Nifty rose 203.70 points or 0.84% to 24,537.90.

Foreign institutional investors (FIIs) bought equities worth ₹50.57 crore on a net basis on Wednesday, according to exchange data.