The Indian rupee appreciated by 3 paise to 83.13 against the US dollar in early trade on Tuesday. This positive movement is attributed to encouraging signals from domestic equity markets and the weakness of the American currency against major overseas counterparts. However, the rupee remains under pressure due to foreign institutional investors selling equities amid volatility in crude oil prices.
At the interbank foreign exchange, the rupee opened at 83.17 and reached a high of 83.10 against the greenback. It later traded at 83.13, marking a 3-paise rise from its previous close. Forex markets were closed on Monday due to Christmas. Meanwhile, the dollar index, measuring the greenback’s strength against a basket of currencies, was trading 0.12% lower at 101.21 on Tuesday.
In the domestic equity market, the BSE Sensex was trading higher, and the NSE Nifty also saw positive movement. The recent data from the Reserve Bank of India (RBI) revealed a significant jump in India’s forex reserves, reaching $615.971 billion in the week ended December 15, with one of the highest weekly increases.