Rupee rises 8 paise to 69.38 vs USD in early trade

The rupee appreciated by 8 paise to 69.38 against the US dollar in opening trade Monday, driven higher opening in domestic equities.

Forex dealers said, the local currency also gained strength amid weakening of the greenback in overseas markets.

However, rising crude oil prices and sustained foreign fund inflows weighed on the domestic currency and restricted the upmove.

The rupee opened at 69.40 at the interbank forex market then gained further ground and touched 69.38 amid a positive opening in domestic equities, displaying gains of 8 paise over its last close.

The rupee Friday had settled at 69.46 to the US dollar.

Meanwhile, the 10-year government bond yield was at 7.01 per cent on Monday, against previous close of 6.97 per cent on Friday.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 478.84 crore on a net basis Friday, provisional exchange data showed.

Brent crude futures, the global oil benchmark, rose 0.51 per cent to USD 63.61 per barrel.

Meanwhile, the benchmark BSE Sensex was trading higher by 268.04 points, or 0.68 per cent to quote at 39,885.74 while the NSE Nifty was trading at 11,943.10, higher by 72.45 points, or 0.61 per cent.

-PTI