The rupee increased 4 paise to 77.66 against the U.S. dollar in the early trade on Monday as a positive trend in domestic equities and weak American currency overseas supported the local unit. However, unrestricted foreign fund outflows and increasing crude prices in the global markets restricted the rupee’s gain, forex dealers said.
Moreover, U.S. Core PCE Price index is expected to show that inflation remained raised making case stronger for Federal Reserve to act more aggressively in raising interest rates USD-INR (May) is facing strong resistance near 78.00 level as long as it sustains below this level it may correct till 76.90 this week.
At the inter-bank foreign exchange, the rupee opened slightly strong at 77.69 against the American dollar, then gained some more ground to quote 77.66, registering a rise of 4 paise over the previous close. It was moving in a narrow range of 77.66 to 77.69 in early deals. In the previous session, the rupee had closed at a record low of 77.70 against the U.S. dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.42 per cent lower at 102.71. Global oil benchmark Brent crude futures moved 0.52 per cent to USD 113.14 per barrel.