Rupee rises 6 paise to 75.50 against US dollar in early trade

The rupee appreciated marginally by 6 paise to 75.50 against the US dollar in early trade on Friday as investors await fresh cues from further announcements on the fiscal stimulus package.

Forex traders said the local currency was trading in a narrow range as appreciation in the unit will be capped amid rising risk-aversion in the broader financial markets and stronger US dollar.

At the interbank foreign exchange, the rupee opened at 75.51, then touched 75.50, registering a rise of 6 paise over its previous close.

On Thursday, the rupee had settled 10 paise lower at 75.56 against the US dollar.

"Investors will look ahead to the press conference from Finance Minister Nirmala Sitharaman on the announcement of further details of economic stimulus package," Reliance Securities said in a research note, adding that investors will also track the release of trade data by the government for April.

Domestic bourses were trading on a negative note with the benchmark Sensex falling 263.74 points at 30,859.15 and the broader Nifty slipping 57.45 points to 9,085.30.

Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth Rs 2,152.52 crore on Thursday, according to provisional exchange data.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.18 per cent lower at 100.29.

Brent crude futures, the global oil benchmark, rose 1.61 per cent to USD 31.63 per barrel.

Traders said rising coronavirus cases in the country weighed on the local unit.

In India, the death toll due to COVID-19 rose to 2,649 and the number of cases climbed to 81,970, according to the health ministry.

Meanwhile, the number of cases around the world linked to the disease has crossed over 44.43 lakh and the death toll has topped 3.02 lakh.