Rupee Opens Higher by 21 Paise Against the Dollar in Opening Trade

The rupee today showed some strength in early trade, quoting 21 paise higher at 67.11 against the dollar from the fresh selling of the US currency by exporters and banks. The domestic currency was also aided by the higher opening in Indian stock markets.

Besides the sale of the American currency by exporters and banks, weakening of the dollar against other major international currencies after tepid inflation data also supported the rupee.

Yesterday, the rupee had lost 5 paise to end at a fresh 15-month low of 67.32 against the dollar from a steady demand for the American currency from banks and importers. This was also impacted by growing concerns over capital outflows as well as trade deficit worries as rising crude prices kept forex sentiment highly volatile throughout the day.

There has also been a rise in Middle-East tensions after US President Donald Trump's decision to withdraw from the nuclear deal with Iran, that the country had signed in 2015 under the Obama administration.

Meanwhile, the benchmark BSE Sensex rose 133.60 points, or 0.38 percent, at 35,379.87 in early trade today.