On July 12, the rupee had settled at 74.58 against the U.S. dollar.
The Indian rupee strengthened by 14 paise to 74.44 against the U.S. dollar in early trade on July 13, tracking a firm trend in the domestic equity market .
At the interbank foreign exchange, the domestic unit opened at 74.49 against the dollar, then inched higher to 74.44, registering a gain of 14 paise over its previous close.
On July 12, the rupee had settled at 74.58 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% down at 92.18 ahead of key CPI data tonight.
On the domestic equity market front, BSE Sensex was trading 240.87 points or 0.46% higher at 52,613.56, while the broader NSE Nifty advanced 70.30 points or 0.45% to 15,762.90.
Forex traders said foreign fund outflows and firm crude oil prices could weigh on investor sentiment and cap the appreciation of the local unit.
Foreign institutional investors were net sellers in the capital market on July 12 as they offloaded shares worth ₹745.97 crore, as per exchange data.
Global oil benchmark Brent crude futures advanced 0.25% to $75.35 per barrel.
On the domestic macro-economic front, retail inflation remained above the RBI’s comfort level for the second consecutive month despite slipping slightly to 6.26% in June while the factory output recorded a growth of 29.3% in May, mainly on account of the base effect.
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