Rupee rises 8 paise to 83.16 against US dollar in early trade

Mumbai: The rupee appreciated by 8 paise to 83.16 against the US dollar in early trade on Thursday on easing global crude oil prices and a positive trend in domestic equities.

Forex traders said rupee is trading in a narrow range as sustained foreign fund outflows weighed on investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.21 against the dollar and then touched an early high of 83.16, registering a gain of 8 paise over its previous close.

In the initial trade, the domestic unit also touched a low of 83.21 against the American currency.

On Wednesday, the rupee had settled at 83.24 against the American dollar.

According to Gaurang Somaiya forex and bullion analyst Motilal Oswal Financial services, volatility for the dollar could remain lower as no major economic data is expected to be released from the US.

"We expect the USDINR(Spot) to trade sideways and quote in the range of 83.05 and 83.40," Somaiya said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.24 per cent down at 106.54.

Brent crude futures, the global oil benchmark, fell 0.68 per cent to USD 86.39 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 358.39 points or 0.55 per cent higher at 65,584.43. The broader NSE Nifty advanced 105.55 points or 0.54 per cent to 19,541.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth Rs 4,424.02 crore, according to exchange data.