On Tuesday morning, the Indian rupee experienced limited movement against the US dollar. Positive domestic equities and a weak American currency provided support, but the impact was offset by increasing crude oil prices.
Forex traders noted that market participants are exercising caution ahead of the release of retail sales data from the US and inflation data from the UK later this week.
The rupee opened at 82.01 against the dollar at the interbank foreign exchange but slipped to 82.06, representing a decline of 3 paise compared to its previous close. In early trading, the rupee reached a high of 81.97 against the US currency.
During the previous session, the rupee had settled at 82.03 against the dollar. Traders mentioned that the positive performance of domestic equity benchmarks and weakness in the US dollar globally boosted investor sentiment and curbed depreciation.
The dollar index declined by 0.09% to 99.74.
Meanwhile, Brent crude futures, the global oil benchmark, increased by 0.31% to $78.74 per barrel.
In the domestic equity market, the BSE Sensex traded 177.22 points or 0.27% higher at 66,767.15, while the NSE Nifty declined by 48.40 points or 0.25% to 19,759.85.
According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 73 crore.
