The Indian rupee gained 4 paise to trade at 74.79 against the American dollar in early deals on July 28 amid caution ahead of the two-day U.S. Federal Reserve’s meeting.
At the interbank forex market, the rupee was trading in a narrow range.
It opened at 74.86 against the U.S. dollar but soon recovered the lost ground and touched 74.79 against the U.S. dollar, up 4 paise over its last close of 74.83.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.14% to 93.80.
Forex traders said firm domestic equities and steady crude oil prices supported the local unit, even as foreign fund outflows and rising COVID-19 cases weighed on investor sentiment.
“Asian currencies were stronger against the U.S. dollar this Tuesday morning and could lift sentiments for the local unit,” Reliance Securities said in a research note but added that “markets will remain cautious ahead of the two-day Fed meeting concluding tomorrow.”
On the equities front, the 30-share BSE benchmark Sensex was quoting 145.04 points higher at 38,079.77; and the broader Nifty rose 44.80 points to 11,176.60.
Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth ₹453.31 crore on July 27, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.09% to $43.45 per barrel.
