The rupee edged higher by 8 paise to 54.73 against the US dollar in early trade at the Interbank Foreign Exchange today on increased selling of the American currency by exporters and banks.
Besides,strengthening of euro against the dollar in overseas market and a higher opening in the equity market supported the rupee,forex dealers said.
The rupee had gained 6 paise to close at 54.81 in the previous session on Friday’s trade.
The BSE benchmark Sensex recovered by 43.49 points,or 0.24 per cent,to 18,493.72 in early trade today.
US dollar,Indian rupee little changed,seen weakening later
(Reuters): USD/INR trading largely unchanged at 54.81/82 versus Friday’s close of 54.8050/8150 as broad gains in the dollar against the yen and some other Asian currencies get offset by its weakness against other majors.
The pair is seen moving in a 54.70 to 55.10 range during the day. Movement of local shares will be key for direction. The index of the dollar against six major currencies up 0.25 percent.
The domestic share market trading up 0.1 percent in early trade.
India’s current account deficit is unsustainable at its present level of about 5 percent of gross domestic product (GDP),the head of the country’s central bank said on Saturday,adding that a deficit of about 2.5 percent of GDP would be sustainable.