Rupee inches 3 paise higher to 77.52 against US dollar in early trade

The rupee appreciated 3 paise to 77.52 against the US dollar in the opening trade on Thursday as a positive trend in domestic equities and weak American currency overseas supported the local unit.

However, rising crude oil prices in the international markets and continued foreign fund outflows kept the pressure on the domestic currency, forex traders said.

At the interbank foreign exchange, the rupee opened slightly weak at 77.54 against the American dollar and then inched up to quote 77.52, registering a rise of 3 paise over the previous close. It was moving in a tight range of 77.52 to 77.55 in early deals.

In the previous session, the rupee settled at 77.55 against the American currency.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 102.01.

On the domestic equity market front, the 30-share Sensex was trading 271.98 points or 0.51 per cent higher at 54,021.24 points, while the broader NSE Nifty climbed 66.20 points or 0.41 per cent to 16,092 points.

Global oil benchmark Brent crude futures rose 0.51 per cent to $114.61 per barrel.

Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 1,803.06 crore, as per stock exchange data.

Meanwhile, official sources on Wednesday said the government is not planning any additional borrowing and will stick to the borrowing target fixed for the current fiscal year despite sacrificing revenue on account of a reduction in duties on petroleum products and other goods.