Representative image of Indian rupees.
Credit: Pixabay Photo
Mumbai: The rupee appreciated 15 paise to 83.16 against the US dollar in early trade on Wednesday, tracking its Asian peers amid a positive trend in domestic equities.
Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels.
At the interbank foreign exchange market, the local unit opened at 83.23 against the greenback. It later touched 83.16 in initial trade, registering a rise of 15 paise from its previous close.
On Monday, the rupee settled on a flat note at 83.31 against the US dollar.
Forex and money markets were closed on Tuesday on account of 'Gudhipadwa'.
"The Indian rupee is expected to rise to 83.21 levels as the dollar remained sideways and Asian currencies rose this morning," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 104.14.
Brent crude futures, the global oil benchmark, rose 0.04 per cent to USD 89.46 per barrel.
The Brent oil was down slightly from its elevated levels as signs of potential build-up in US inventories and the market watching for progress in ceasefire talks between Israel and Hamas.
Asian currencies all gained as CNH rose to 7.2397 levels as markets await US CPI data which is expected to come at 3.4 per cent against last month data of 3.2 per cent, Bhansali said, adding that the US FOMC meeting minutes are also to be released tonight alongside the Federal Budget Balance.
On the domestic equity market front, The 30-share BSE Sensex climbed 273.65 points to 74,957.35 in early trade. The NSE Nifty advanced 83.85 points to 22,726.60.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 593.20 crore, according to exchange data.