Rupee rises 2 paise to 83.96 against US dollar

MUMBAI: The rupee rose 2 paise to 83.96 against the US dollar in early trade on Wednesday as the greenback weakened against key currencies overseas and a drop in crude oil prices. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14 per cent to 101.67. International oil benchmark Brent crude futures fell 0.62 per cent to 73.29 in early trade. The rupee opened at 83.96, up 2 paise from its previous close, and remained steady at 83.98 against the US dollar on Tuesday.

Amid this week’s employment data, US markets witnessed massive selling yesterday as investors decided to hold investments amid a sharp drop in oil prices, said Amit Pabari, Managing Director, CR Forex Advisors. Meanwhile, in early trade on the domestic stock markets, the Sensex fell 721.75 points to 81,833.69, while the Nifty dropped 196.05 points to 25,083.80. Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 1,029.25 crore, according to exchange data.