Indian rupee strengthens by 2 paise to 82.84 against U.S. Dollar in early trade

In the latest trading session, the Indian rupee showed signs of strength, edging up by 2 paise against the U.S. dollar to settle at 82.84 in early trade. This marginal uptick came amidst foreign fund inflows.

Forex dealers noted that despite the upward movement, factors such as an increase in crude oil prices and subdued trading in domestic stocks limited the rupee's gains during the opening session. The rupee fluctuated within a narrow range of 82.83 to 82.84 against the dollar, compared to its previous close of 82.86 on March 15.

Meanwhile, the U.S. dollar index, which measures the greenback's performance against a basket of six major currencies, remained steady at 103.43. Crude oil prices experienced a slight uptick in early Asian trade, with Brent crude, the global benchmark, rising by 0.35 per cent to trade at $85.64 per barrel, while oil for the Indian basket reached $84.50 per barrel.

On the domestic front, equity markets exhibited minimal movement during the morning session on Monday. The benchmark Sensex saw a marginal increase of around 0.1 per cent, reaching 72,718.72, while the Nifty inched up by 0.06 per cent to 22,036.20.

Foreign investors displayed renewed interest in Indian stocks, turning net buyers on Friday by purchasing shares worth Rs 848.56 crore. This uptick in foreign portfolio investments (FPIs) aligns with a broader trend of increased FPI activity, with investments totaling Rs 40,710 crore in the first half of the month. This surge in investment coincides with an optimistic global economic outlook and a robust domestic macroeconomic landscape.