Rupee tracks positive domestic equities, gains 17 paise against dollar

Rupee closed at 82.65 (provisional) against the dollar as the American currency weakened in the overseas market

The rupee appreciated 17 paise to close at 82.65 (provisional) against the US dollar on Monday, tracking positive domestic equities and the weakening of the American currency in the overseas market.

At the interbank foreign exchange market, the local unit opened at 82.79 and touched an intra-day high of 82.63 and a low of 82.83 against the greenback.

It finally settled at 82.65, registering a rise of 17 paise over its previous close of 82.82.

According to Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, the rupee appreciated on Monday on a surge in domestic equities and a soft US Dollar. Domestic indices gained by around 1.5 per cent. The US Dollar softened amid improved global risk sentiments and softer inflation in the US.

"We expect the rupee to trade with a positive bias on weakness in the Dollar and positive domestic markets. The decline in safe-haven appeal on the rise in risk appetite in global markets may also put pressure on the dollar.

"However, the surge in crude oil price caps the sharp upside in the rupee. USD/INR spot price is expected to trade in a range of Rs 82 to Rs 83.30," Choudhary said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.11 per cent to 104.31.

Global oil benchmark Brent crude futures rose 3.63 per cent to USD 83.92 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 721.13 points or 1.20 per cent to end at 60,566.42, while the broader NSE Nifty rose 207.80 points or 1.17 per cent to 18,014.60.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Friday as they offloaded shares worth Rs 706.84 crore, according to exchange data.