Rupee rises 10 paise to 83.80 against US dollar in early trade

Rupee appreciated 10 paise to 83.80 against the US dollar in morning trade on Monday, supported by the weakening of the American currency in the overseas market and foreign fund inflows.

Forex traders said the dollar index lost significant ground and is hovering around the 100.60 level following US Fed Chair Jerome Powell's recent speech at the Jackson Hole meeting, where he said that time has come for loosening of policy, indicating possible US rate cuts in September.

• Also read: Rupee settles higher as focus turns to Powell’s remarks

At the interbank foreign exchange market, the local unit opened at 83.83 and then gained ground and touched 83.80, registering a rise of 10 paise from its previous close.

On Friday, the rupee traded in a narrow range and settled higher by 3 paise at 83.90 against the American currency.

Rupee opened on a positive note and was hovering around 83.80 this morning as the US dollar has lost against most currencies, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

"It is expected to be in a range of 83.75/95 with the Reserve Bank buying dollars at lower levels of the pair and selling near 83.95," Bhansali added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.06 per cent to 100.66 points.

Brent crude, the global oil benchmark, was 0.63 per cent up at $79.52 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex gained 262.21 points, or 0.32 per cent, to 81,348.42 points, while the Nifty rose by 62.15 points, or 0.25 per cent, to 24,885.30 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth Rs 1,944.48 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped by $4.546 billion to $674.664 billion during the week ended August 16, the RBI said on Friday. In the previous week, the forex kitty had dropped by $4.8 billion to $670.119 billion.

• Also read: How the Japanese yen will carry the trade