Representational image only.
| Photo Credit: The Hindu
The Rupee gained 11 paise to 82.01 against the U.S. dollar in early trade on April 12 tracking a positive trend in domestic equities and foreign fund inflows.
Forex traders said investors are focussing on India’s CPI data scheduled to be released later in the day.
At the interbank foreign exchange, the domestic unit opened at 82.08 against the dollar, then climbed to 82.01, registering a rise of 11 paise over its previous close. On April 11, the rupee closed at 82.12 against the U.S. currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11% to 102.08. Brent crude futures, the global oil benchmark, advanced 0.04% to $85.64 per barrel.
“The market will be focussing on India’s CPI data, which is expected to come at 5.80% vs the previous 6.44%,” CR Forex Advisors MD-Amit Pabari said.
However, falling inflation will push the RBI to pivot on the interest rate hike cycle, which could hurt the Rupee going forward due to the narrowing interest rate differential between the U.S. and India, Mr. Pabari added.
In the domestic equity market, the 30-share BSE Sensex advanced 74.07 points or 0.12% to 60,231.79. The broader NSE Nifty gained 37.45 points or 0.21% to 17,759.75.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth ₹342.84 crore, according to exchange data.