Mumbai: The Indian rupee appreciated against the US dollar in early trade on Friday ahead of the RBI monetary policy announcement. Forex traders said the outflow of foreign funds and an upward movement in the crude oil prices weighed on the Indian currency. But, positive domestic equity markets and softening American currency overseas supported the Indian currency.
At the interbank foreign exchange market, the local currency opened at 83.46 and then slipped to 83.47 against the US dollar, registering a gain of 6 paise from its previous close. On Thursday, the rupee settled 9 paise lower at 83.53 against the dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.02 per cent higher at 104.07. Foreign investors were net sellers of Indian equities on Thursday as they offloaded shares worth Rs 6,867.72 crore on a net basis.