Mumbai: The Indian rupee strengthened by 5 paise to 83.24 against the US dollar in early trading on Friday, buoyed by positive sentiment in domestic equity markets and a decline in global crude oil prices.
Forex analysts noted that despite the robust performance of domestic equities, the rupee faced pressure from a strong US dollar and continued foreign capital outflows.
Market participants are anticipated to closely monitor upcoming domestic macroeconomic indicators scheduled for release later today.
At the interbank foreign exchange market, the rupee commenced trading at 83.25 and advanced to 83.24 against the dollar in initial transactions, marking a 5 paise increase from its previous close.
In Thursday’s session, the rupee had appreciated by 11 paise to conclude at 83.29 against the US dollar.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, recorded a modest gain of 0.13 percent to reach 104.79.
Recent US GDP figures for the first quarter of the year, released on Thursday, revealed a slower growth rate of 1.3 percent, below the anticipated 1.6 percent, prompting expectations of potential interest rate cuts by the Federal Reserve.
In global oil markets, Brent crude futures, the benchmark for international oil prices, retreated by 0.38 percent to USD 81.55 per barrel.
On the domestic front, the 30-share BSE Sensex surged by 500.19 points or 0.68 percent to reach 74,385.79 points in early trade, while the broader NSE Nifty climbed 143.80 points or 0.64 percent to 22,632.45 points.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares valued at Rs 3,050.15 crore.
