Rupee rises 10 paise to 70.94 against US dollar in early trade

The rupee appreciated by 10 paise to 70.94 against the US dollar in early trade on Tuesday as easing crude prices and sustained foreign fund inflows strengthened investor sentiments.

At the interbank foreign exchange the rupee opened at 70.98, then gathered momentum and touched 70.94 against the US dollar, registering a rise of 10 paise over its previous close.

On Monday, rupee had settled for the day at 71.04 against the US dollar.

Forex traders said investors were optimistic about the US-China trade talks.

Domestic bourses opened on a cautious note on Tuesday with benchmark indices Sensex trading 60.61 points lower at 40,426.82 and Nifty down 15.45 points at 11,922.05.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.02 per cent to 97.62.

Market participants, said foreign fund inflows supported the local currency and took it past 71-level.

Foreign institutional investors (FIIs) remained net buyers in the capital market, as they purchased shares worth Rs 459.22 crore on Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.17 per cent to trade at USD 64.14 per barrel.

The 10-year government bond yield was at 6.65 per cent in morning trade.