Forex Market: Indian rupee rises against US dollar

Mumbai: The Indian rupee appreciated against the US dollar in early trade on Wednesday. Forex traders said rupee is trading in a narrow range as all eyes are on the US May CPI print and the Fed rate decision on the global front and India’s Consumer Price Index (CPI) on the domestic front. Moreover, the strength of the American currency in the overseas market and elevated crude oil prices weighed on the local unit and restricted the upmove.

At the interbank foreign exchange market, the local currency opened at 83.56 and gained further to trade at 83.54 against the US dollar in initial deals, registering an increase of 5 paise from its previous closing level. On Tuesday, the  Indian rupee settled for the day lower by 9 paise at 83.59 against the US dollar.

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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.03 per cent higher at 105.25. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, selling shares worth Rs 111.04 crore, according to exchange data.