The rupee opened on a strong note in the early trade on Tuesday, gaining 22 paise versus the US dollar on increased selling by exporters. The domestic currency closed the day against US dollar on Monday at 73.12 on Bloomberg index. The rupee was trading at 72.93 at the time of reporting.
“After two days of positivity, Indian currency again came under pressure and slipped above the 73 mark amid the weakness in the emerging market currencies and US dollar demand from exporters. For Indian currency, 72.12 will be a major level to watch out on the upside while on the other end, 73.65 and 73.99 are the supports,” said Geojit Financial Services.
The weakness of US dollar against a few currencies overseas and a good opening of the domestic equity market also supported the rupee, dealers told PTI.
The Indian rupee on Monday had plunged 67 paise to close at 73.12 per US dollar on increased demand for the American currency from importers and unabated foreign fund outflows. Meanwhile, the benchmark Sensex jumped 118.44 points, or 0.34 per cent, to 35,069.36 in opening trade Tuesday. In the Sensex, Tata Motors shares zoomed more than 4%, while VEDL shares gained up to 3.5%. RIL, TCS, Infosys and IndusInd Bank shares gained more than 1% each.