Rupee surges 15 paise to 74.17 against US dollar in early trade

The rupee surged 15 paise to 74.17 against the US dollar in opening trade on Tuesday tracking positive domestic equities and weak American currency.

At the interbank forex market, the domestic unit opened at 74.17 against the US dollar, registering a gain of 15 paise over its previous close.

It had settled at 74.32 against the US dollar on Monday.

Forex traders said positive trend in the equity markets, weak American currency and sustained foreign fund inflows aided the rupee's movement.

"Optimism surrounding the US-China Phase 1 deal also lent support after both sides saw progress on trade issues and are committed to making the Phase 1 agreement reached in January a success," Reliance Securities said in a research note.

Further, Asian currencies have started stronger against the US dollar and could boost the domestic unit, the report added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.17 per cent to 93.14.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 93.52 points higher at 38,892.60 and broader NSE Nifty advanced 23.62 points to 11,490.05.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 219.07 crore on Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.09 per cent to USD 45.17 per barrel.