Rupee rallies 17 paise to 73.34 against US dollar in early trade

The Indian rupee advanced by 18 paise to 73.33 against the US dollar in opening trade on Monday supported by positive domestic equities.

At the interbank forex market, the local unit opened at 73.34 against the US dollar, then inched higher to 73.33, reflecting a rise of 18 paise over its last close. The local unit also touched a low of 73.41 in initial deals.

On Friday, the rupee had settled at 73.51 against the American currency.

The rupee started on a stronger note against the dollar supported by improved risk appetite in the global and regional markets and weak dollar, Reliance Securities said in a research note.

However, the rise of Covid-19 cases in India and the likely presence of the Reserve Bank of India could cap gains, the note added.

After recording over four lakh fresh cases for four consecutive days, India witnessed a single-day rise of 3,66,161 Covid-19 cases on Monday, which pushed its tally to 2,26,62,575, according to the health ministry.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05 per cent to 90.27.

Global oil benchmark Brent crude futures rose 0.51 per cent to $68.63 per barrel.

On the domestic equity market front, BSE Sensex was trading 286.91 points or 0.58 per cent higher at 49,493.38, while the broader NSE Nifty rose 100.10 points or 0.68 per cent to 14,923.25.

Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 1,142.75 crore, as per exchange data.