Rupee appreciates 9 paise to 83.10 against US dollar in early trade
The rupee rose 9 paise to 83.10 against the US dollar in early trade on Friday amid a retreating dollar versus major rivals and positive cues from equity markets.
Massive selling of equities by foreign investors and an upward trend in crude oil prices, however, capped the rise of domestic currency, forex dealers said.
The Indian unit opened strong at 83.13 against the US dollar and touched the highest level of 83.09. It later traded at 83.10 against the greenback, registering a gain of 9 paise from its previous close.
On Thursday, the rupee settled 3 paise higher at 83.19.
Analysts said higher interest rates and US bond yields are prompting foreign investors to stay in the selling mode in Indian capital markets, while the rupee witnessed some recovery due to a significant decline in India’s current account deficit (CAD).
The CAD has dropped to USD 9.2 billion, or 1.1 per cent of GDP in the first quarter of the current fiscal from USD 17.9 billion (2.1 per cent of GDP) a year ago,