Rupee rises 6 paise to 68.92 against U.S. Dollar in early trade

Rupee rises 6 paise to 68.92 against USD in early trade . | File

The Rupee appreciated by 6 paise to 68.92 against the U.S. Dollar in early trade on July 25 amid positive opening in domestic equity market.

Forex traders said heavy buying in domestic equity market supported the domestic unit, however, foreign fund outflows and rising crude oil prices weighed on local currency.

Besides, Rupee is expected to trade in a narrow range ahead of the much crucial European Central Bank (ECB) policy statement to be released later on July 25.

At the interbank foreign exchange, the Rupee opened at 68.99, then gained momentum and touched a high of 68.92, registering a rise of 6 paise over its previous close. The domestic unit was trading at 68.96 against the Dollar at 0949 hrs.

The domestic currency had settled at 68.98 against the U.S. Dollar on July 24.

Other major global cues that are going to dictate terms to the Rupee include the US second quarter preliminary GDP print on July 26 and the Federal Open Market Committee (FOMC) meeting on July 31, traders said.

Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out ₹1,393.71 crore July 24, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.19% to trade at $63.30 per barrel.

Domestic bourses opened on a bullish note July 25 with benchmark indices Sensex trading 320.35 points higher at 38,168.00 and Nifty up 83.60 points at 11,354.90.

Meanwhile, market participants are betting on the U.S. and China trade talks next week.

The US and Chinese officials are restarting negotiations in Shanghai on July 30 and on July 31, in an effort to resolve the year-long trade dispute The dialogue.