The rupee appreciated by 11 paise to 79.52 against the U.S. dollar in opening trade on Wednesday, tracking easing crude oil prices and foreign fund inflows.
Forex traders said sideways USD/INR trades are likely ahead of crucial U.S. inflation data.
At the interbank foreign exchange, the rupee opened at 79.59 against the U.S. dollar and touched 79.52 in initial deals, registering a rise of 11 paise over the last close.
In the previous session on Monday, the rupee had closed at 79.63 against the U.S. dollar.
The forex market was closed on Tuesday on account of ‘Muharram’.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10% to 106.26.
Global oil benchmark Brent crude futures fell 0.27% to USD 96.05 per barrel.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the dollar index remains stable before the U.S. CPI data.
“Asian currencies are stable to slightly weak, awaiting the data. Dips in USD/INR are getting bought as uncertainty, on inflation, war and hikes by U.S. FED remain,” Mr. Bhansali said, adding that the range for the rupee is 79.40 to 79.80.
“Exporters may sell near to 79.80 levels while importers may buy near to 79.40 to hedge their month-end payables,” Mr. Bhansali added.
On the domestic equity market front, the 30-share Sensex was trading 139.31 points or 0.24% lower at 58,713.76 points, while the broader NSE Nifty fell 29.55 points or 0.17% to 17,495.55.
Foreign institutional investors were net buyers in the capital market on Monday, purchasing shares worth ₹1,449.70 crore, as per exchange data.