The Indian rupee strengthened by 6 paise to 74.25 against the U.S. dollar in early trade on July 6, tracking weakness of the American currency in the overseas market.
At the interbank foreign exchange, the domestic unit opened at 74.28 against the dollar, then inched higher to 74.25, registering a gain of 6 paise over its previous close.
On July 5, the rupee had settled at 74.31 against the U.S. dollar.
“Asian currencies have started flat to weaker against the greenback this Tuesday morning and could weigh on sentiments,” Reliance Securities said in a research note.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% down at 92.13.
On the domestic equity market front, BSE Sensex was trading 33.57 points or 0.06% higher at 52,913.57, while the broader NSE Nifty advanced 22.40 points or 0.14% to 15,856.75.
Forex traders said foreign fund outflows and firm crude oil prices could weigh on investor sentiment and cap the appreciation of the local unit.
Foreign institutional investors were net sellers in the capital market on July 5 as they offloaded shares worth ₹338.43 crore, as per exchange data.
Global oil benchmark Brent crude futures rose 0.41% to $77.48 per barrel.
