Rupee gains 11 paise to 70.81 vs USD in early trade

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Mumbai: The rupee appreciated by 11 paise to 70.81 against the US dollar in opening trade Tuesday, driven by weakening of the greenback in overseas markets and fresh foreign inflows. The rupee opened weak at 70.95 at the interbank forex market then gained further ground and touched 70.81 amid a weak opening in domestic equities, displaying gains of 11 paise over its last close.

Forex dealers said, selling of the American currency by exporters supported the rupee. The rupee Friday had weakened by 20 paise to close at 70.92 against the US dollar. The domestic forex market and equity market were closed Monday on account of Mahashivratri.

Forex traders said, fresh foreign fund inflows and easing crude prices also supported the rupee. Meanwhile, foreign investors (FIIs) remained net buyers in the capital markets, putting in Rs 198.38 crore on a net basis Friday, as per provisional data.

Brent crude futures, the global oil benchmark, eased 0.49 per cent to USD 65.35 per barrel. Meanwhile, the benchmark BSE Sensex was trading lower by 42.42 points, or 0.12 per cent to quote at 36,012.39 while the NSE Nifty was trading at 10,847.45, down by 16.05 points, or 0.15 per cent.