Rupee rises eight paise to 82.52 against U.S. dollar

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| Photo Credit: The Hindu

The Rupee gained eight paise to 82.52 against the U.S. dollar in early trade on June 7 amid a positive trend in domestic equities.

The domestic currency is trading in a narrow range as market participants are vigilant ahead of Reserve Bank of India’s (RBI) monetary policy outcome on Thursday. RBI is largely expected to leave the repo rate unchanged at 6.5%.

At the interbank foreign exchange, the Rupee opened at 82.56 against the dollar, then rose to 82.52, registering a gain of eight paise over its previous close. On Tuesday, the Rupee closed at 82.60 against the U.S. currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02 to 104.10. Brent crude futures, the global oil benchmark, declined 0.45% to $75.95 per barrel.

Investors are awaiting the RBI monetary policy outcome as the Central bank is likely to go in for a pause, Finrex Treasury Advisors LLP Head of Treasury Anil Kumar Bhansali said.

“The U.S. Fed will declare its interest rate decision on June 14, the European Central Bank on June 15 and the Bank of England on June 22. The Fed looks to be in a pause state, while others may raise rates by 25 basis points,” Mr. Bhansali said.

The Rupee will remain range-bound till these policy outcomes with demand for dollar outstripping supply, Mr. Bhansali added.

In the domestic equity market, the 30-share BSE Sensex rose 112.34 points or 0.18% to 62,905.22. The broader NSE Nifty was up 47.80 points or 0.26% to 18,646.80.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth 385.71 crore, according to exchange data.