The rupee rose by 4 paise to 82.33 against the US dollar in early trade on Wednesday, tracking positive sentiments in the domestic equity market and relatively weaker dollar against major currencies.
The domestic unit at the interbank foreign exchange opened stronger at 82.32 against the US dollar and then went up to 82.30, before it slipped to 82.33 against the greenback, registering a rise of 4 paise against its previous close. This could be credited to expectations of a slower interest rate hike by the US Federal Reserve on the back of lower inflation also boosted the overall sentiment.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.10 per cent lower at 103.49.
Anand James, Chief Market Strategist at Geojit Financial Services, said there could be slippage to 82 levels. "It would require consistent trades above 82.36 to rekindle positivity again."
On Tuesday, the rupee had closed at 82.37 against the US dollar.
Brent crude features
Global oil benchmark Brent crude futures rose 1.21 per cent to USD 78.39 per barrel.
Sensex was trading at 58,303.40 up 403.21 points while the Nifty was up 130.40 points at 17,173.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 3,086.96 crore, according to exchange data.
Wholesale price-based inflation
On the domestic front, the wholesale price-based inflation declined to 3.85 per cent in January on easing prices of manufactured items, fuel and power, even though food articles remained expensive.
With inputs from PTI
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