Rupee jumps 21 paise to 88.56 against US dollar in early trade

Mumbai: The rupee rebounded from record low level and gained 21 paise to 88.56 against the US dollar in early trade on Tuesday on the back of lower crude oil prices overseas.

The Indian currency, however, remained under pressure due to a strong dollar and outflow of foreign fund from capital market, forex traders said.

At the interbank foreign exchange, the rupee opened at 88.55 and then traded at 88.56 against the greenback in early deals, sharply higher by 21 paise from its previous closing level.

On Monday, the domestic unit, declining for the third consecutive session, ended 7 paise lower at 88.77 against the US dollar, near its all-time closing level.

The rupee had recorded its lowest-ever closing level of 88.81 against the dollar on October 14.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 99.75.

Brent crude, the global oil benchmark, was down 0.32 per cent to USD 64.68 per barrel in futures trading.

In the domestic equity market, Sensex fell 55 points to 83,923.48 in early trade while Nifty declined 40.95 points to 25,722.40.

Foreign institutional investors sold equities worth Rs 1,883.78 crore on Monday, according to exchange data.

A monthly survey released on Monday showed India's manufacturing sector activity strengthened in October, buoyed by Goods and Services Tax relief, productivity gains and tech investment, even as international sales increased at a weaker pace.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.7 in September to 59.2 in October, indicating a quicker improvement in the sector's health.