Rupee rises 7 paise against US dollar in early trade

Mumbai: The rupee was trading in a narrow range and appreciated by seven paise against the US dollar in early trade on Wednesday, amid a muted trend in domestic equities.

Forex traders said the rupee is trading in a narrow range as investors remain cautious ahead of the BRICS summit and US Federal Reserve Chair Jerome Powell's speech at Jackson Hole Symposium this week.

At the interbank foreign exchange, the domestic unit opened at 83.02, then touched a high of 82.92 against the American currency, registering a rise of seven paise over its last close.

On Tuesday, the rupee had recovered from its all-time low levels and settled higher by 14 paise at 82.99 against the US dollar.

"Market awaits with baited breadth the Jackson Hole Symposium between 24th and 26th in which Fed Chairperson's speech will be keenly watched," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.08 to 103.48.

Brent crude futures, the global oil benchmark, rose 0.17 per cent to USD 84.17 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 8.36 points or 0.01 per cent higher at 65,228.39. The broader NSE Nifty advanced 8.20 points or 0.04 per cent to 19,404.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 495.17 crore, according to exchange data.