Rupee inches 3 paise higher to 74.51 against U.S. dollar in early trade

Forex traders said foreign fund outflows and firm crude oil prices could weigh on investor sentiment and cap the appreciation of the local unit.

The Indian rupee opened on a flat note and inched higher by 3 paise to 74.51 against the U.S. dollar in early trade on Friday, as investors await fresh triggers.

At the interbank foreign exchange, the domestic unit opened at 74.53 against the dollar, then inched higher to 74.51, registering a gain of just 3 paise over its previous close.

On Thursday, the rupee had settled at 74.54 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% down at 92.56.

The Indian Rupee opened flat against the U.S. Dollar this Friday as investors await fresh triggers, Reliance Securities said in a research note.

Moreover, Asian currencies have started weak and could weigh on sentiments, the note said.

“Technically, USDINR Spot pair supports are at 74.38 and 74.25. Resistances are at 74.60 and 74.75,” it added.

On the domestic equity market front, BSE Sensex was trading 16.51 points or 0.03% lower at 53,142.34, while the broader NSE Nifty advanced 1.50 points or 0.01% to 15,925.70.

Forex traders said foreign fund outflows and firm crude oil prices could weigh on investor sentiment and cap the appreciation of the local unit.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth ₹264.77 crore, as per exchange data.

Global oil benchmark Brent crude futures was trading unchanged at $73.47 per barrel.

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