Rupee rises 17 paise to ₹86.28 against US dollar in early trade

Rupee appreciated 17 paise to ₹86.28 against the US dollar in morning trade on Tuesday, as the US dollar index and crude oil prices retreated from their elevated levels.

Forex traders said the dollar weakened from its 109 levels but clawed back to 108.31 as Donald Trump declared tariffs against Canada and Mexico in the near future but stopped short of declaring any tariffs against China.

While uncertainty eased slightly, concerns regarding tariffs still lingered in the background, as the traders began to adjust their expectations, betting that even if tariffs were imposed, they would likely be less aggressive, traders said.

At the interbank foreign exchange, the rupee opened at ₹86.28, registering a rise of 17 paise from its previous close of ₹86.45 against the greenback. The local unit also touched ₹86.43 against the US dollar initial trade.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.94% at 108.31.

Brent crude, the global oil benchmark, fell by 0.05% to USD 80.11 per barrel.

On the domestic equity market front both the benchmark indices Sensex and Nifty witnessed a highly volatile trade. The 30-share sensitive index Sensex after opening on a positive note slipped in the negative territory and was trading 111.83 points or 0.15% down at 76,961.61 in early trade. Similarly, the wide-based Nifty trading was down 1.90 points or 0.01% at 23,342.85 after opening on a positive note.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Monday, as they offloaded shares worth ₹4,336.54 crore, according to exchange data.