Rupee rises by 12 paise to 69.05 vs USD in early trade

The rupee appreciated by 12 paise to 69.05 against the US dollar in opening trade Friday, driven by weakening of the greenback in overseas markets and higher opening in domestic equities.

The rupee opened strong at 69.11 at the interbank forex market, then gained further ground and touched 69.05, displaying gains of 12 paise over its last close.

The local unit however, pared some gains and was trading at 69.12, up 5 paise from its previous close at 0929 hrs.

The rupee plunged 76 paise Thursday to close at 69.17 against the US dollar after the RBI cut key interest rate but kept its monetary policy stance 'neutral'.

Forex dealers said, weakening of the American currency in the overseas markets, easing crude prices and positive opening in domestic equity market supported the rupee.

However, foreign fund outflows weighed on the domestic currency and restricted the upmove.

Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 226.19 crore Thursday, as per provisional data.

Brent crude futures, the global oil benchmark, eased 0.26 per cent to USD 69.22 per barrel.

Meanwhile, the benchmark BSE Sensex was trading higher by 195.72 points, or 0.51 per cent to quote at 38,880.44 while the NSE Nifty was trading at 11,660.35, up by 62.35 points, or 0.54 per cent.