Rupee rises 18 paise to ₹86.26 against US dollar in early trade

Rupee appreciated 18 paise to ₹86.26 against the US dollar in morning trade on Friday, supported by positive domestic equities and soft American currency index.

Forex traders said weak crude oil prices and positive domestic markets supported the local unit, while sustained foreign fund outflows weighed on the local unit.

Traders further noted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee's trajectory.

At the interbank foreign exchange, the rupee opened at ₹86.31 and touched ₹86.26 against the US dollar, registering a rise of 18 paise from its previous close. The local unit also touched ₹86.33 against the US dollar initial trade.

On Thursday, the rupee declined 9 paise to settle at ₹86.44 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.15% at 107.88.

Brent crude, the global oil benchmark, fell by 0.22% to USD 78.12 per barrel.

On the domestic equity market front both the benchmark indices Sensex and Nifty opened on a positive note. The 30-share sensitive index Sensex was trading 166.71 points or 0.22% up at 76,687.09 in early trade. Similarly, the wide-based Nifty trading was trading higher by 49.30 points or 0.21% at 23,254.65 points.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Thursday, as they offloaded shares worth ₹5,462.52 crore, according to exchange data.