Rupee rises 16 paise against dollar in early trade

Mumbai: The rupee appreciated by 16 paise to 68.53 against the US dollar in opening trade Monday, driven by positive opening in domestic equities and easing crude oil prices.

The rupee opened strong at 68.59 at the interbank forex market then gained further ground to touch 68.53 per dollar, displaying gains of 16 paise over its previous close. On Friday, rupee had settled at 68.69 against the US dollar.

 Forex dealers said, easing crude oil prices and positive opening in domestic equities supported the rupee. However, foreign fund outflows weighed on the domestic currency and restricted the upmove.

Brent crude, the global benchmark, was trading at 66.64 per barrel lower by 0.12 per cent.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 850.11 crore on Friday, as per provisional data.

Traders said, the currency market is expected to witness volatility ahead of release of WPI inflation numbers.

Meanwhile, the benchmark BSE Sensex opened on a positive note and was trading with gains of 138.45 points, or 0.36 per cent to quote at 38,874.68 while the NSE Nifty was trading at 11,584.05, up 31.55 points, or 0.27 per cent.