Mumbai, The Rupee on Tuesday appreciated 27 paise to 70.47 against the US dollar in early trade on selling of the American currency by bankers and exporters, dealers at Forex Market said. Positive opening in domestic equity market supported the domestic unit. However, foreign fund outflows and rising crude oil prices weighed on the local currency, forex traders added.
Rupee opened weak at 70.80, but gained momentum and touched a high of 70.47, registering a rise of 27 paise over its previous close at the interbank foreign exchange., Besides, the domestic unit is expected to trade in a narrow range ahead of the outcome of Reserve bank of India’s monetary policy review meet scheduled to be released on Wednesday.
The domestic unit recorded intra-day high and low at 70.85 and 70.46 respectively. On Monday, the domestic currency had suffered the biggest single-day drop in past six years — to close at a five-month low of 70.74, owing to heavy capital outflows by investors anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over the Kashmir issue.