Rupee gains 4 paise to 79.80 against US dollar in early trade

Mumbai: The rupee appreciated 4 paise to 79.80 against the US dollar in opening trade on Monday, supported by receding crude prices in global markets and weakness in the American currency overseas. However, losses in the domestic stock markets weighed on the local unit and restricted the gain, forex traders said.

At the interbank foreign exchange, the domestic unit opened lower at 79.90 against the dollar but recovered lost ground to quote 79.80, registering a gain of 4 paise over its previous close. In the previous session, the rupee had depreciated 20 paise to close at 79.84 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.05 percent to 108.11. Brent crude futures, the global oil benchmark, declined 1.14 percent to USD 95.62 per barrel.

In the equity market, the 30-share BSE Sensex was trading 351.18 points or 0.59 percent down at 59,294.97. Similarly, the broader NSE Nifty fell 107.35 points or 0.60 percent to 17,651.10. Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 1,110.90 crore on Friday, according to provisional data.

After turning net buyers last month, foreign investors have shown tremendous enthusiasm for Indian equities and infused close to Rs 44,500 crore in August so far.