The rupee appreciated 30 paise to 75.65 against the U.S. dollar in early trade on May 26 tracking positive opening of domestic equities and weakness in the American currency.
Forex traders said a positive start of domestic stocks supported the local unit, while sustained foreign fund outflows and concerns over coronavirus outbreak weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 75.69, then gained ground to touch 75.65, registering a rise of 30 paise over its previous close.
On May 22, rupee had settled at 75.95 against the U.S. dollar.
Forex market was closed on May 25 for Eid-ul-Fitr.
Traders said rupee tracked positive Asian equities and opened on a positive note.
“Asian shares are firm amid optimism that re-opening of businesses in several countries could fuel growth as investors look past the U.S.-China tensions that has weighed on sentiments over the last week,” Reliance Securities said in a research note.
Domestic bourses were trading on a positive note on May 26 with the benchmark Sensex trading 280.45 points higher at 30,953.04 and broader Nifty rising 82.25 points to 9,121.50.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.26% down at 99.60.
Traders said investor sentiments remained fragile amid concerns over the impact of coronavirus outbreak on the domestic as well as global economy.
Meanwhile, foreign institutional investors were net sellers in the capital market, as they sold equity shares worth ₹1,353.90 crore on May 22, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.91% to $36.21 per barrel.