The rupee had closed at its all-time low of 78.33 against the US dollar in the previous session.
The rupee had closed at its all-time low of 78.33 against the US dollar in the previous session.
The rupee rose 6 paise to 78.27 against the US dollar in early trade on Monday as heavy buying in domestic equities and weakness in the greenback strengthened investor sentiment.
However, higher crude oil prices and persistent foreign fund outflow limited the rupee’s gains, forex dealers said.
At the Interbank Foreign Exchange, the rupee opened sharply higher at 78.24 against the US dollar, then closed at 78.27, registering a gain of 6 paise over the previous close.
In the last session, Rupee closed at all-time low of 78.33 against the US dollar.
Feather domestic equity marketT against, the 30-share Sensex was trading 589.05 points or 1.12% higher at 53,317.03, while the broader NSE Nifty was up 179.65 points or 1.14% at 15,878.90.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.14% to 104.03.
global oil benchmark brent crude futures rose 0.57% to $113.77 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Friday as they offloaded shares worth Rs 2,353.77 crore on a net basis, according to exchange data.
Foreign investors continued to leave the Indian equity markets and pulled out nearly ₹46,000 crore so far this month after the Reserve Bank and the US Federal Reserve tightened monetary policy, higher oil prices and volatility in the rupee.
Net outflows from equities by foreign portfolio investors (FPIs) have reached ₹2.13 lakh crore so far this year, data from the depositories showed.
Given the policy normalization story by the US Fed and other major central banks, coupled with higher oil prices and a volatile rupee, FPIs are likely to stay away from emerging market assets, says Hitesh Jain, Lead Analyst – Institutional Equities, Yes Securities , he said.