Mumbai: The Indian rupee appreciated against the US dollar in early trade on Wednesday. A positive trend in domestic equities supported the Indian currency. However, sustained foreign fund outflows weighed on the local currency and restricted the up move.
At the interbank foreign exchange market the local currency moved in a narrow range. It opened at 83.49 against the American currency and touched 83.47 in initial trade, registering a rise of 4 paise from its previous close. On Tuesday, the Indian rupee closed at 83.51 against the American currency.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was at 104.93, lower by 0.07 per cent. Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Tuesday, as they offloaded shares worth Rs 4,065.52 crore.
On the macroeconomic front, wholesale inflation rose to a 13-month high of 1.26 per cent in April fuelled by rising prices of food articles, especially vegetables, amid expectations of RBI holding interest rates in the policy review next month.
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