Rupee 8 paise higher at 74.82 against US dollar in early trade

The rupee gained 8 paise to 74.82 against the US dollar in opening trade on Monday tracking positive domestic equities and weak American currency.

At the interbank forex market, the domestic unit opened at 74.86 against the US dollar, gained further ground and touched 74.82 against the US dollar, registering a gain of 8 paise over its previous close.

It had settled at 74.90 against the US dollar on Friday.

"Asian currencies are stronger against the USD. Rupee is likely to continue to trade sideways. Likely range for today is 74.79-75.00," said Abhishek Goenka, Founder and CEO, IFA Global.

Forex traders said positive trend in the equity markets, weak American currency and sustained foreign fund inflows supported the rupee, while US-China concerns and rising COVID-19 cases are weighing on investor sentiment.

The dollar index, which gauges the greenback''s strength against a basket of six currencies, fell 0.09 per cent to 93.01.

"The US dollar has started the week off on a weak note. US real rates are still deep in negative territory and that could continue to weigh on the US dollar," Goenka added.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 31.30 points higher at 37,908.64, and the broader NSE Nifty advanced 22.45 points to 11,205.85.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 46.39 crore on Friday, according to exchange data.

Brent crude futures, the global oil benchmark, rose 0.69 per cent to USD 45.11 per barrel.