Rupee rises 8 paise against US dollar in early trade

The Indian rupee opened on a positive note and rose 8 paise to 71.23 against the US dollar in early trade on Friday tracking gains in domestic equity market, even as crude oil prices firmed up. Forex traders positive opening in domestic equities supported the rupee, while steady rise in crude oil prices and foreign fund outflows weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 71.26 then rose to 71.23 against the dollar, showing a rise of 8 paise over its previous closing. The Indian rupee on Thursday had closed at 71.31 against the dollar.

Meanwhile, brent crude futures, the global oil benchmark, rose 0.16 per cent to USD 68.03 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they sold shares worth Rs 504.13 crore on Thursday, as per provisional data.

Domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 161.59 points up at 41,325.35 and Nifty higher by 36.60 points at 12,163.15. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 97.43. The 10-year government bond yield was at 6.51 in morning trade.

Meanwhile, on the global front, China slammed US defence act over trade restrictions. The National Defense Authorization Act (NDAA) — signed into law last week — bars the use of federal funds to buy railcars and buses from China, and slows the lifting of sanctions on tech giant Huawei.