Indian Rupee gains 3 paise to 77.52 against the U.S. dollar in the early trade on Thursday as a positive trend in domestic equities and weak American currency overseas supported the local unit. Although, increasing crude oil prices in the global markets and continued foreign fund outflows kept the pressure on the domestic currency, Forex traders said.
At the Interbank foreign exchange, the rupee opened slightly weak at 77.54 against the U.S dollar and then inched up to priced 77.52, registering a rise of 3 paise over the previous close. It was moving in a tight range of 77.52 to 77.55 in early deals. In the previous session, the rupee closed at 77.55 against the U.S dollar.
Global oil benchmark Brent crude futures moved 0.51 per cent to USD 114.61 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 per cent lower at 102.01. Considering India’s record deficit and heavy reliance on oil imports, firmer energy prices drown the Indian rupee (INR).
Meanwhile, official sources said the government is not planning any further borrowing and will stick to the borrowing target fixed for the current fiscal year 2022 despite sacrificing revenue because of a reduction in duties on petroleum products and other goods.