Rupee rises 11 paise to 75.44 against US dollar in early trade

The rupee appreciated 11 paise to 75.44 against the US dollar in early trade on Tuesday tracking gains in the equity market amid sustained foreign fund inflows.

The rupee opened at 75.53 against the US dollar, then advanced to touch 75.44 against the US dollar, up 11 paise over its previous close.

It had settled at 75.55 against the greenback on Monday.

Forex traders said positive domestic equities, persistent foreign fund flows and the revival of business activity supported the rupee.

The 30-share BSE benchmark Sensex was quoting 286.22 points higher at 34,656.80 and broader NSE Nifty rose 82.35 points to 10,249.80.

Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 813.27 crore on Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.42 per cent to USD 40.97 per barrel.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 96.70.

"US dollar was flat this morning in Asian trade as investors await the outcome of a US Federal Reserve meeting this week," Reliance Securities said in a research note.

Meanwhile, investor sentiments remain fragile amid rising coronavirus cases across the world. The number of cases around the world linked to the disease has crossed 71.19 lakh and the death toll has topped 4.06 lakh.

In India, the death toll due to COVID-19 rose to 7,466 and the number of infections rose to 2,66,598, according to the health ministry.