Rupee moves in narrow range against US dollar in early trade

The rupee was trading in a narrow range against the US dollar in the morning session on Tuesday, as the support from positive domestic equities and weak American currency was negated by rising crude oil prices.

Market participants remain cautious ahead of retail sales data from the US and the UK's inflation data this week, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 82.01, then slipped to 82.06, registering a decline of 3 paise over its last close.

In early trade the rupee also touched a high of 81.97 against the American currency.

On Monday, the rupee had settled at 82.03 against the dollar.

Traders said domestic equity benchmarks scaling all-time high levels and weakness in the American currency overseas boosted investor sentiments and restricted the depreciating bias.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 99.74.

Brent crude futures, the global oil benchmark, rose 0.31 per cent to $78.74 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 177.22 points or 0.27 per cent higher at 66,767.15. The broader NSE Nifty declined 48.40 points or 0.25 per cent to 19,759.85.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 73 crore, according to exchange data.