The rupee appreciated 2 paise to 83.35
against the US dollar in early trade on Wednesday, amid a bullish trend in
domestic equities and sustained foreign fund inflows.
Forex traders said investors remained on
the sidelines ahead of the Reserve Bank of India’s monetary policy decision
later this week.
At the interbank foreign exchange, the
rupee opened 2 paise higher at 83.35 against the dollar as domestic benchmark
indices touched new lifetime peaks.
On Tuesday, the rupee settled at 83.37
against the dollar.
“The RBI’s policy, commencing on
Tuesday with a decision due on Friday, will be closely monitored,” said CR
Forex Advisors MD Amit Pabari.
The Reserve Bank is likely to maintain
the status quo on the short-term interest rate in its monetary policy review.
RBI Governor Shaktikanta Das-headed Monetary
Policy Committee (MPC) is scheduled to begin its three-day deliberations on
December 6. Das would unveil the decision of the six-member MPC on December 8.
Meanwhile, the dollar index, which
gauges the greenback’s strength against a basket of six currencies, was trading
0.11 per cent lower at 103.93.
Brent crude futures, the global oil
benchmark, advanced 0.12 per cent to US$ 77.29 per barrel.
In the domestic equity market, the
30-share BSE Sensex was trading 269.23 points or 0.39 per cent higher at
69,565.25 points. The broader NSE Nifty jumped 79.50 points or 0.38 per cent to
20,934.60 points.
Foreign Institutional Investors (FIIs)
were net buyers in the capital markets on Tuesday as they purchased shares
worth Rs 5,223.51 crore, according to exchange data.
PTI
