Rupee appreciates 3 paise to ₹83.42 against US dollar in early trade

The rupee appreciated 3 paise to ₹83.42 against the US dollar in early trade on Monday, supported by a firm trend in domestic equities. Forex traders said the strength of the American currency in the overseas market and foreign fund outflows weighed on the local unit and restricted the up move.

At the interbank foreign exchange market, the local unit opened at ₹83.43 against the greenback. It later touched ₹83.42 in initial trade, registering a rise of 3 paise from its previous close.

On Friday, the rupee inched up 1 paisa to settle at ₹83.45 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 105.16, higher by 0.13%. Brent crude futures, the global oil benchmark, rose 0.23% to USD 83.15 per barrel.

On the domestic equity market front, the 30-share BSE Sensex climbed 434.04 points or 0.59% to 74,312.19 in early trade. The NSE Nifty advanced 91.60 points or 0.41% to 22,567.45 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth ₹2,391.98 crore, according to exchange data.

Meanwhile, India's forex reserves dropped USD 2.412 billion to USD 637.922 billion as on April 26, in the third consecutive weekly decline in the reserves, the Reserve Bank of India (RBI) said on Friday.

In the previous reporting week, the overall reserves had declined USD 2.28 billion to USD 640.33 billion.

This article has been sourced directly from the PTI news feed. Except for the headline and summary, no other changes have been made.