Rupee rises three paise to 82.40 against U.S. dollar in early trade

Representational image.
| Photo Credit: The Hindu

The Rupee gained three paise to 82.40 against the U.S. dollar in early trade on June 13 supported by positive macroeconomic data and a firm trend in domestic equities.

The Rupee is trading in a narrow range against the American currency as investors are awaiting cues from the release of U.S. inflation data that could influence the Federal Open Market Committee (FOMC) policy stance.

At the interbank foreign exchange, the domestic unit opened at 82.42 against the dollar and then rose to 82.40, registering a gain of three paise over its previous close. In the initial trade, the Rupee touched a low of 82.46 against the American currency. On Monday, the Rupee closed at 82.43 against the U.S. currency.

On the domestic macroeconomic front, retail inflation declined to a 25-month low of 4.25% in May mainly on account of softening prices of food and fuel items.

India’s industrial production growth rose to 4.2% in April from 1.7% in March 2023, mainly due to good performance by the manufacturing and mining sectors, according to official data released on June 12.

“On the domestic front, the latest prints of India’s CPI hitting a 25-month low coupled with robust industrial production, expansionary manufacturing, and service activity offer breathing space to RBI to keep the interest rate stable for the next meeting,” CR Forex Advisors Managing Director Amit Pabari said.

“Investors will remain watchful as the onset of the delayed monsoon could influence food inflation in the upcoming time,” traders said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.20% to 103.44. Brent crude futures, the global oil benchmark, advanced 0.71% to $72.35 per barrel.

In the domestic equity market, the 30-share BSE Sensex advanced 328.13 points or 0.52% to 63,052.84. The broader NSE Nifty rose 92.35 points or 0.5% to 18,693.85. Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹626.62 crore, according to exchange data.