Rupee climbs to 81.96 against US dollar after gains in domestic equities

The rupee recovered 8 paise to 81.96 against the US dollar in the early trade on Tuesday after gains in domestic equities and a weak greenback in overseas markets.

The domestic currency opened higher at 82.02 against the dollar at the interbank foreign exchange market. It moved in a tight range of 81.95 to 82.02 in the early trade.

The rupee traded at 81.96 against the US dollar at 9.45 am, registering a gain of 8 paise over the previous close of 82.04.

The dollar index, which gauges the greenback's strength against a basket of six currencies, traded lower by 0.07 per cent at 102.63.

Crude oil price benchmark Brent crude was up 0.44 per cent at USD 74.51 per barrel.

"... 81.75-55 level appears more possible now, and we will switch to upside view if above 82.1 only," Anand James, Chief Market Strategist at Geojit Financial Services, said.

In the domestic equity market, the 30-share BSE Sensex rebounded 187.41 points or 0.30 per cent to 63,157.41 points while the broader Nifty advanced 54.70 points or 0.29 per cent to 18,745.90 points.

Foreign Portfolio Investors (FPIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 409.43 crore, according to exchange data.