Rupee opens 23 paise higher against USD in early trade

Mumbai: The rupee rebounded from six-month low level and appreciated by 23 paise to 71.48 against the US dollar in early trade on Wednesday tracking gains in Asian currencies and fresh foreign fund inflows.

On Tuesday, the rupee had closed at a new six-month low of 71.71 against the US dollar as economic uncertainties continued to weigh.

At the interbank foreign exchange, the rupee opened at 71.48, registering a rise of 23 paise over its previous close of 71.71.

The domestic unit pared some gains and was trading at 71.57 against the dollar at 0951 hrs.

Forex traders said Asian currencies including South Korean won, Malaysian ringgit, Indonesian rupiah, Taiwan dollar and Philippines peso were trading higher. Moreover, the latest remark by the US President Donald Trump also enthused investors, they added.

Trump on Tuesday said that short-term recession might simply be the cost of waging his much-needed trade war with China.

"China wants to make a deal, and that's good. But they have to make a deal that fair to us," Trump told reporters in the Oval Office.

Market participants however said cautious opening in domestic equity market, rising crude oil prices weighed on local currency.

Foreign institutional investors (FIIs) remained net buyers in the capital market, putting in Rs 373.23 crore on Tuesday, according to provisional exchange data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 98.22.

Brent crude futures, the global oil benchmark, rose 0.52 per cent to trade at USD 60.34 per barrel.

Domestic bourses opened on a cautious note on Wednesday with benchmark indices Sensex trading 11.28 points lower at 37,316.73 and Nifty down 8.60 points at 11,008.40.

The 10-year government bond yield was at 6.57 per cent in morning trade.