<p>Mumbai: The rupee appreciated 19 paise to 86.79 against the US dollar in early trade on Thursday, as the American currency and crude oil prices retreated from their elevated levels.</p><p>Forex traders said there is a negative bias for the USD/INR pair amid a muted trend in domestic equities and the unabated foreign fund outflow is weighing on investor sentiments.</p><p>At the interbank foreign exchange, the rupee opened at 86.88 and gained further ground to trade at 86.79 against the greenback during early deals, up 19 paise from its previous close.</p><p>On Tuesday, the rupee depreciated 10 paise to close at 86.98 against US dollar.</p><p>The forex market was closed on Wednesday on account of 'Chatrapati Shivaji Maharaj Jayanti' Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.16 per cent lower at 107.</p>.Markets open lower amid uncertainty over US tariff measures, weak Asian peers. <p>Brent crude, the global oil benchmark, fell 0.34 per cent to $75.78 per barrel in futures trade.</p><p>Forex traders said on the domestic front, India's economy is expected to demonstrate a strong momentum in the second half of the year but the rupee is battling global headwinds.</p><p>According to an article on 'State of the Economy' published in RBI's February bulletin, high frequency indicators, like vehicles sales, air traffic, steel consumption and GST E-way bills, point towards a sequential pickup in momentum of economic activity during the second half of the fiscal 2024-25 and sustain moving forward.</p><p>However, a strong dollar, driven by US economic resilience and trade policy pivots, could exacerbate capital outflows from emerging economies, push risk premiums higher, and intensify external vulnerabilities, it added.</p><p>"The USD/INR pair is expected to trade within a range of 86.60–87.20. The 87.20 level is emerging as a strong resistance, while 86.50 is acting as a critical support zone, A breach below 86.50 could open up a path for 85.80-86.00 levels," CR Forex Advisors MD Amit Pabari said.</p><p>In the domestic equity market, the 30-share BSE Sensex was trading 297.33 points, or 0.39 per cent, lower at 75,641.85 points, while the Nifty was down 69.25 points, or 0.3 per cent, at 22,863.65 points.</p><p>Foreign institutional investors (FIIs) offloaded equities worth Rs 1,881.30 crore on net basis on Wednesday, according to exchange data. </p>
<p>Mumbai: The rupee appreciated 19 paise to 86.79 against the US dollar in early trade on Thursday, as the American currency and crude oil prices retreated from their elevated levels.</p><p>Forex traders said there is a negative bias for the USD/INR pair amid a muted trend in domestic equities and the unabated foreign fund outflow is weighing on investor sentiments.</p><p>At the interbank foreign exchange, the rupee opened at 86.88 and gained further ground to trade at 86.79 against the greenback during early deals, up 19 paise from its previous close.</p><p>On Tuesday, the rupee depreciated 10 paise to close at 86.98 against US dollar.</p><p>The forex market was closed on Wednesday on account of 'Chatrapati Shivaji Maharaj Jayanti' Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.16 per cent lower at 107.</p>.Markets open lower amid uncertainty over US tariff measures, weak Asian peers. <p>Brent crude, the global oil benchmark, fell 0.34 per cent to $75.78 per barrel in futures trade.</p><p>Forex traders said on the domestic front, India's economy is expected to demonstrate a strong momentum in the second half of the year but the rupee is battling global headwinds.</p><p>According to an article on 'State of the Economy' published in RBI's February bulletin, high frequency indicators, like vehicles sales, air traffic, steel consumption and GST E-way bills, point towards a sequential pickup in momentum of economic activity during the second half of the fiscal 2024-25 and sustain moving forward.</p><p>However, a strong dollar, driven by US economic resilience and trade policy pivots, could exacerbate capital outflows from emerging economies, push risk premiums higher, and intensify external vulnerabilities, it added.</p><p>"The USD/INR pair is expected to trade within a range of 86.60–87.20. The 87.20 level is emerging as a strong resistance, while 86.50 is acting as a critical support zone, A breach below 86.50 could open up a path for 85.80-86.00 levels," CR Forex Advisors MD Amit Pabari said.</p><p>In the domestic equity market, the 30-share BSE Sensex was trading 297.33 points, or 0.39 per cent, lower at 75,641.85 points, while the Nifty was down 69.25 points, or 0.3 per cent, at 22,863.65 points.</p><p>Foreign institutional investors (FIIs) offloaded equities worth Rs 1,881.30 crore on net basis on Wednesday, according to exchange data. </p>