Rupee gains 8 paise to 74.82 amid weak dollar, positive equities

Indian rupee, the local unit appreciated 8 paise to 74.82 per dollar on Tuesday tracking weakness in the US currency, foreign fund inflows and gains in the domestic equity market.

The domestic currency benchmark opened at 74.83 per dollar, then touched 74.82, rising 8 paise over its previous close of 74.90 against the US currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 93.52.

Gains in the domestic currency were supported by foreign fund inflows into domestic equity and debt markets. Foreign portfolio investors (FPIs) bought shares worth Rs 302.88 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 504.92 crore in the Indian equity market on Monday, provisional data showed.

Market participants will also keep a check on factory output or IIP growth data for June, scheduled to release on August 11. In May, the country's industrial output declined by 34.7 per cent, albeit at a slower pace compared to April 2020, where the index had contracted by 57.6 per cent.

"Asian currencies were trading stronger against the US dollar this morning and could lend support. However, worsening strains between Washington and Beijing over Hong Kong could limit the appreciation bias in currencies," Reliance Securities said in a research note.

On the equity front, the 30-share BSE benchmark Sensex was rising 189 points higher at 38,371 and NSE Nifty50 gained 52 points higher at 11,322.

In India, coronavirus cases surpassed 22 lakh mark today, with total deaths standing at 0.45 lakh. Worldwide, there are 202 lakh confirmed cases and 7.38 lakh deaths from the coronavirus COVID-19 outbreak.

Brent crude futures, the global oil benchmark, rose 0.47 per cent to USD 45.20 per barrel.

(Edited with PTI Inputs)

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