Rupee appreciates 24 paise to 81.78 against US dollar in early trade

The rupee gained 24 paise to 81.78 against the US dollar in early trade on Monday tracking a positive trend in domestic equities and foreign fund inflows.

At the interbank foreign exchange, the domestic unit opened at 81.90 against the dollar, then climbed to 81.78, registering a rise of 24 paise over its previous close.

On Thursday, the rupee closed at 82.02 against the US currency.

On April 7, equity and forex markets were closed on account of Good Friday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.11 per cent to 102.20.

Brent crude futures, the global oil benchmark, declined 0.22 per cent to USD 84.93 per barrel.

On the domestic side, the rupee remained largely unaffected after the Reserve Bank of India Monetary Policy Committee meeting.

"The pause in the rate hike could further squeeze down the interest rate differential between the US and India and could put pressure on the rupee. Moreover, the market will continue to check the development of rising COVID cases in India," CR Forex Advisors MD-Amit Pabari said, adding that on April 9, India reported 5,357 new COVID cases, with an active caseload of 32,000.

Additionally, it has been observed that RBI hardly keeps Dollar-Rupee below 81.80-81.50 levels, so this zone should act as a strong support for the pair, Pabari added.

In the domestic equity market, the 30-share BSE Sensex advanced 55.91 points or 0.09 per cent to 59,888.88. The broader NSE Nifty gained 22.25 points or 0.13 per cent to 17,621.40.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth Rs 475.81 crore, according to exchange data.