Rupee rises 8 paise to 69.38 vs US dollar in early trade

The rupee appreciated by 8 paise to 69.38 against the US dollar in opening trade Wednesday, driven by easing crude oil prices and foreign fund inflows. Forex traders said the weakening of the greenback vis-a-vis some major currencies overseas aided the local unit. However, a weak opening in domestic equities weighed on the domestic currency.

The rupee opened strong at 69.38 at the interbank forex market, then gained further ground and touched 69.36, displaying gains of 8 paise over its last close.

The local unit however, pared some gains and was trading at 69.38, up 6 paise from its previous close at 1005 hrs.

The rupee had settled at 69.44 against the US dollar Tuesday.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 95.79 crore Tuesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, eased 1.43 per cent to USD 61.40 per barrel.

Domestic bourses opened on a bearish note Wednesday with benchmark indices Sensex trading 202.24 points down at 39,748.22 and Nifty down 57.65 points at 11,907.95.