Rupee rises 13 paise to 71.67 vs USD in early trade

The rupee appreciated by 13 paise to 71.67 against the US dollar in opening trade Tuesday, driven by positive opening in domestic equities and weakening of the greenback in overseas markets.

Forex dealers said investors were cautious ahead RBI's Monetary Policy Committee outcome scheduled for February 7. However, selling of the American currency by exporters supported the rupee.

The rupee opened strong at 71.72 at the interbank forex market then gained further ground to touch 71.67 per dollar amid positive opening in domestic equities, displaying gains of the 13 paise against the greenback.

On Monday, the rupee had plunged by 55 paise to close at 71.80 against the US dollar.

Forex traders said, sustained foreign fund outflows and surging crude oil prices restricted the rupee up move.

Foreign funds pulled out Rs 112.13 crore from the capital markets on a net basis, while domestic institutional investors sold shares worth Rs 65.22 crore Monday, provisional data showed.

Meanwhile, brent crude, the global benchmark, was trading higher at 62.79 per barrel higher by 0.45 per cent.

The benchmark BSE Sensex was trading with gains of 29.40 points, or 0.08 per cent to quote at 36,612.14 while the NSE Nifty was trading at 10,920.75, up 8.50 points, or 0.08 per cent.