Rupee opens marginally higher in early trade on weak dollar, higher opening of domestic equity market

Mumbai: The rupee edged 2 paise higher to 68.51 against the US dollar in early trade on Tuesday ahead of the Federal Reserve’s policy meet. [caption id=“attachment_5114261” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Besides the greenback’s weakness against some currencies overseas, increased selling of the American currency by exporters as well as banks supported the rupee, forex dealers said. A higher opening in the domestic equity market influenced the currency’s movement, they added. On Monday, the domestic unit had surged by 57 paise to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit. On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1,823 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,269 crore Monday, provisional data showed. Meanwhile, the benchmark BSE Sensex rose 83.10 points, or 0.22 per cent, to 38,178.17 in early trade.