Representative image of rupee.
Credit: Pixabay
Mumbai: The rupee inched up 1 paisa against the US dollar in early trade on Tuesday, as the support from positive domestic equities was negated by elevated crude oil prices and a strong American currency overseas.
Forex traders said the dollar strengthened on safe-haven demand. However, a positive trend in domestic equities supported the rupee at lower levels.
At the interbank foreign exchange, the rupee was trading in a narrow range. The local unit opened at 83.26 against the dollar. It rose slightly to 83.25 against the greenback in initial trade, up 1 paisa from its previous close.
On Monday, the rupee traded on a flat note and settled 1 paisa lower at 83.26 against the US dollar.
"The Indian rupee keeps juggling between 83.15-83.30 levels amid overall pressure such as a stronger US DXY, higher US bond yields, surging oil prices amid Middle East tensions, and a shaky domestic equity market causing FPI outflow," CR Forex Advisors MD Amit Pabari said.
Meanwhile, the dollar index advanced by 0.26 per cent to 106.39.
Brent crude futures, the global oil benchmark, were trading 0.41 per cent higher at $87.81 per barrel.
In the domestic equity market, the BSE Sensex advanced 48.80 points or 0.08 per cent to 64,161.45. The NSE Nifty was up 17.70 points or 0.09 per cent to 19,158.60.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,761.86 crore.