Rupee gains 21 paise to 81.97 against US dollar in early trade

In the initial trade, the domestic unit was moving in a tight range of 81.95-81.99 against the American currency

In the previous session on July 12, the rupee had settled at 82.18 against the dollar. File | Photo Credit: Nagara Gopal

The rupee appreciated 21 paise to 81.97 against the U.S. dollar in early trade on July 13, as a rally in domestic equities and losses in the greenback against major rivals overseas strengthened investor sentiment. Besides, encouraging macroeconomic data supported the local currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened sharply up at 81.98 against the dollar and then strengthened slightly to 81.97, registering a gain of 21 paise over its previous close. In the initial trade, the domestic unit was moving in a tight range of 81.95-81.99 against the American currency.

In the previous session on July 12, the rupee had settled at 82.18 against the dollar.

Meanwhile, retail inflation rose to a three-month high of 4.81% in June, mainly on account of hardening prices of cereals and pulses, though it remained within the comfort zone of the Reserve Bank. India's industrial production rose to 5.2% in May from 4.5% in April 2023, mainly due to good performance by the manufacturing and mining sectors, according to official data released on July 12.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04% to 100.14. Brent crude futures, the global oil benchmark, rose 0.49% to $80.50 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 337.05 points or 0.52% higher at 65,730.95. The broader NSE Nifty advanced 96.65 points or 0.50% to 19,480.95.

Foreign Institutional Investors (FIIs) emerged as net sellers in the capital markets on July 12 as they sold shares worth ₹1,242.44 crore, according to exchange data.