Rupee opens 2 paise higher at 64.42 against dollar

The rupee opened 2 paise higher at 64.42 against dollar on Tuesday on account of some selling of American currency by banks and exporters.

Meanwhile, domestic equity markets opened in green following firm Asian cues. The 30-share BSE Sensex was trading 165.98 points, or 0.56 per cent, up at 29,821.82 in early trade, while the 50-share NSE Nifty index was up 55.10 points, or 0.60 per cent, at 9,273.20.

The local currency on Monday closed 17 paise higher at 64.44 against dollar.

Angel Broking in a research note said, “USDINR spot is likely to trade sideways to higher on Tuesday following gains in the Asian markets on French election relief.”

Foreign portfolio investors stood net buyers in domestic equity markets on Monday and bought shares worth Rs 1,250.68 crore with gross purchases and gross sales of Rs 5,246.74 crore and Rs 3,996.06 crore, respectively.

On a year-to-date basis, rupee has advanced over 5 per cent till date. Amar Ambani, head of research at brokerage IIFL said, “The recent rupee strength has been remarkably inspiring, underpinned by a clear indication of an end to monetary easing cycle, narrowing inflation differentials between India and developed zone and overwhelming State poll outcomes for the Modi-led BJP party.”

“Moving forward, the currency will derive cues from risks to inflation outlook, exogenous variables including hawkish Fed and geopolitical uncertainty. We see USDINR values bottoming around 63.80, followed by a phase of consolidation in the range of 64-66.20,” said Ambani.