Rupee rises 6 paise to 83.24 against US dollar in early trade
Forex traders said falling domestic inflation, rise in industrial production figures and improvement in trade deficit aided the local unit.
However, geopolitical tensions, particularly the Israel-Hamas conflict, dented investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 83.25 against the dollar and then touched an early high of 83.24, registering a gain of 6 paise over its previous close.
On Friday, the rupee fell 6 paise to settle at 83.30 against the US dollar.
«For now, a mild risk-off stance supports USD demand, but positive economic data and RBI intervention maintain the rupee's range between 83.05 and 83.30. The situation remains delicate, with the potential for rapid shifts in response to geopolitical developments,» CR Forex Advisors MD-Amit Pabari said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10 per cent down at 106.53.
Brent crude futures, the global oil benchmark, advanced 0.11 per cent to USD 90.99 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 161.12 points or 0.24 per cent lower at 66,121.62.
