Rupee gains for 2nd consecutive session

Mumbai: The rupee appreciated 45 paise to 81.90 against the US dollar in early trade on Monday amid a positive trend in domestic equities and easing crude prices.

At the interbank foreign exchange, the domestic unit opened at 82.14 against the dollar, then gained further ground to touch 81.90, registering a rise of 45 paise over its previous close. On Friday, the rupee appreciated by 53 paise to close at 82.35 against the US dollar. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee started the trade with a gap-up trade tracking the overnight weakness of the dollar.

However, most of the Asian and emerging market peers weakened against the greenback this Monday morning after Chinese officials on the weekend reiterated their commitment to a strict Covid containment approach and could cap appreciation bias of the local unit, Iyer noted. The key triggers for currencies this week will be the US inflation rate data followed by several speeches by Fed officials. Additionally, US mid-term elections will also be a key trigger for the market. In India, CPI and IIP data this week will be a key trigger for the domestic markets.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.19 per cent to 111.08. Brent crude futures, the global oil benchmark, declined 1.04 per cent to $97.54 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 81.6 points or 0.13 per cent higher at 61,031.96. Similarly, the broader NSE Nifty rose 52.50 points or 0.29 per cent to 18,169.65. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 1,436.25 crore, according to exchange data.