Rupee rises 16 paise to 74.36 against US dollar in early trade

Mumbai: The rupee surged 16 paise to 74.36 against the US dollar in opening trade on Friday as a positive trend in domestic equities supported the local unit.

At the interbank foreign exchange, the rupee opened strong at 74.36 against the dollar, a rise of 16 paise over its previous close.

On Thursday, the rupee had settled at 74.52 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 95.23.

The Indian rupee opened stronger this Friday tracking the recovery in Asian equities and currencies. However, a strengthening dollar could cap appreciation, Reliance Securities said in a research note.

Markets now will look to cues from the domestic inflation number due tonight after market hours. IIP data will provide clues how the economy is doing, the note added.

Global oil benchmark Brent crude futures fell 0.74 per cent to USD 82.26 per barrel.

On the domestic equity market front, BSE Sensex was trading 190.88 points or 0.32 per cent higher at 60,110.57, while the broader NSE Nifty advanced 67.15 points or 0.38 per cent to 17,940.75.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 1,637.46 crore, as per exchange data.