Rupee up 10 paise against US dollar in early trade
The rupee today strengthened by 10 paise to Rs 54.46 against the US dollar, extending its rising streak for the third day, on the Interbank Foreign Exchange (Forex) market in the early trade on increased foreign fund flows amid firm local equities.
Forex dealers said euro's gains against the American currency in the overseas market also supported the rupee.
The rupee had gained 16 paise to close at one-week high of 54.56 against the dollar in yesterday's trade.
Meanwhile, the 30-share BSE Sensex rose by 125.27 points, or 0.65 per cent, to 19,538.81 in the early trade today.
Indian rupee may edge lower at open, importers to support
USD/INR is expected to edge marginally lower versus its previous close of 54.56/57 with the rally in the euro likely to boost sentiment for the rupee.
The euro rallied on Thursday, posting its largest one-day gain in two months against the dollar, as European Central Bank President Mario Draghi gave no indication that the bank would cut interest rates further in the euro zone.
Traders also expect dollar inflows towards the stake-sale in a government firm. The Indian government will sell a 12.5 percent stake in state-run Rashtriya Chemicals and Fertilizers (RCF) Ltd through an auction of shares to raise about $57 million.
The pair is seen opening around 54.50 and moving in a 54.40 to 54.70 range initially in the session. Traders, however, expect importers to come in, to buy the greenback at lower levels, limiting a very sharp slide.
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