The rupee rose 4 paise to 83.24 against the US dollar in early trade on Tuesday, helped by positive equity market trends even as concerns remained over the conflict in the Middle East.
At the interbank foreign exchange, the rupee opened at 83.23 and stayed in the narrow range of 83.23 and 83.25 against the greenback. It later traded at 83.24 against the dollar, registering a rise of 4 paise over its previous close.
On Monday, the rupee slipped 1 paise to settle at 83.28 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 106.07.
In the domestic equity market, the 30-share BSE Sensex rose 309.97 points or 0.47 per cent to 65,822.36 points while the broader NSE Nifty advanced 94 points or 0.48 per cent to 19,606.35 points.
Brent crude futures, the global oil benchmark, fell 0.35 per cent to $87.84 per barrel.
While the rupee made marginal gains in early trade, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial services, said, “we expect the USD-INR (Spot) to trade sideways and quote in the range of 83.05 and 83.40”.
The attack on Israel by Hamas has raised fears of a broader conflict in the Middle East.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹997.76 crore, according to exchange data.