Rupee appreciates 6 paise to 83.32 against US dollar in early trade

The rupee recovered from its all-time low levels and appreciated 6 paise to 83.32 against the US dollar in morning trade on Tuesday, tracking the weakness of the American currency in the overseas market and positive domestic equities.

Forex traders said the rupee fell to fresh record lows on Monday despite broad weakness in the dollar against its major crosses on suspected importer-related buying.

At the interbank foreign exchange, the rupee opened at 83.33, then touched 83.32 against the American currency, higher by 6 paise over its previous close.

On Monday, the rupee declined by 12 paise to settle at its all-time low of 83.38 against the US dollar.

Investors will focus on the existing home sales data from the US and weaker-than-expected numbers could keep the dollar weighed down. We expect the USDINR (Spot) to trade sideways and quote in the range of 83.05 and 83.40, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial, said.

Meanwhile, the dollar index was trading down by 0.21 per cent to 103.21.

"Dollar index continues its fall as it moves down to 103.30 with the US 10-year bond at 4.4060 per cent. Market awaits for the FOMC meeting minutes which could give an idea of Fed's stance on interest rates," Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.

Brent crude futures, the global oil benchmark, was trading 0.53 per cent lower at USD 81.88 per barrel.

In the domestic equity market, the BSE Sensex advanced 255.12 points or 0.39 per cent to 65,910.27 points. The NSE Nifty was up 80.15 points or 0.41 per cent to 19,774.15 points.

According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 645.72 crore.