Rupee appreciates 25 paise to 81.81 against US dollar in early trade

The rupee appreciated by 25 paise to 81.81 against the US dollar in early trade on Monday, tracking positive sentiments in the domestic equity market and subdued dollar against major currencies.

At the interbank foreign exchange, the domestic unit opened at 81.78 against the dollar and slipped to 82.06. Later, it gained ground to reach 81.81 registering an increase of 25 paise over its previous close.

On Friday, the rupee settled at 82.06 against the US dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies fell 0.77 per cent to 103.78.

Brent crude futures, the global oil benchmark, rose 0.30 per cent to USD 83.03 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 262.24 points or 0.44 per cent higher at 59,397.37 points. The broader NSE Nifty rose 79.50 points or 0.46 per cent to 17,492.40 points.

Investors are closely watching the developments following the collapse of the Silicon Valley Bank in the US.

On Sunday, the US Federal Reserve on Sunday announced a new emergency loan programme to bolster the capacity of the banking system and against the backdrop of the Silicon Valley Bank crisis, some analysts also expect that the Federal Reserve might even go slow on interest rate hikes to tame inflation.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 2,061.47 crore, according to exchange data.