Rupee trades in narrow range against US dollar in early trade

New Delhi: The rupee was trading in a narrow range against the US dollar in opening trade on Thursday amid a rally in the equity markets. At the interbank foreign exchange, the rupee witnessed range-bound trading in early deals. It opened at 79.22 against the US dollar, then fell to 79.31, registering a decline of 6 paise over the last close.

It was moving in a tight range of 79.22-79.31 in the morning trade.

On Wednesday, the rupee rebounded by 38 paise to close at 79.25 against the US currency.

The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.16 percent to 105.36 after official data showed that US inflation slowed down from a 40-year high in June to 8.5 percent in July on lower gasoline prices.

Meanwhile, global oil benchmark Brent crude futures gained 0.12 percent to USD 97.28 per barrel.

Forex traders said the rupee is likely to trade on a mixed note. Recovery in domestic markets from lower levels and FII inflows may support the local unit.

On the domestic equity market front, the 30-share Sensex was trading 582.67 points or 0.99 percent higher at 59,399.96 points, while the broader NSE Nifty was up 159.80 points or 0.91 percent to 17,694.55.

Foreign institutional investors remained net buyers in the capital market on Wednesday as they purchased shares worth Rs 1,061.88 crore, as per exchange data.

(With PTI inputs)

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)