Rupee rises 7 paise to 83.06 against US dollar in early trade

Mumbai, Aug 22 (PTI) The rupee recovered from its all-time low levels and appreciated by 7 paise to 83.06 against the US dollar in early trade on Tuesday, as the American currency retreated from its elevated levels.

Forex traders said the rupee is trading in a narrow range as selling pressure by foreign investors dented sentiments, while the weak tone in US dollar and positive domestic markets cushioned the downside.

At the interbank foreign exchange, the domestic unit opened at 83.07, then touched a high of 83.06 against the American currency, registering a rise of 7 paise over its last close.

On Monday, the rupee depreciated by 3 paise and settled for the day at an all-time low of 83.13 against the US dollar.

“Rupee in the last one week has witnessed quite a bit of action but in the last couple of sessions it is consolidating in a narrow range and volatility has been low,” said Gaurang Somaiya forex and bullion analyst, Motilal Oswal Financial services.

Somaiya further added that the US dollar too is retracing from higher levels after witnessing its longest winning streak in the last 15 months as it closed for the straight six weeks following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the US.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.12 per cent to 103.17.

Brent crude futures, the global oil benchmark, fell 0.17 per cent to USD 84.32 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 127.81 points or 0.20 per cent higher at 65,343.90. The broader NSE Nifty advanced 41.90 points or 0.22 per cent to 19,435.50.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 1,901.10 crore, according to exchange data.