Rupee strengthens by 20 paise to 81.50 US cents

In response to a weaker dollar on international markets, the rupee rose 20 paise to 81.50 against the US dollar in early Wednesday trade. However, the rupee’s gains were hampered by early losses on domestic stock markets and an increase in oil prices.

The rupee advanced at the interbank foreign exchange, rising from its opening price of 81.62 to a morning session high of 81.49.

At 0950 hours, the rupee was trading for 81.50 to the dollar. On Tuesday, the local currency had decreased and had reached 81.70.

The US dollar index, which measures the value of the dollar relative to a basket of six different currencies, fell 0.04 percent to 101.88.

While oil for the Indian basket fell 2.69 percent to USD 79.98 per barrel, Brent crude was trading 0.43 percent lower at USD 86.48 per barrel.

The 30-share BSE Sensex fell by 268 points, or 0.44 percent, to 60,709.93 on the domestic equity market front. The larger NSE Nifty fell to 18,028.05 by 90.25 points, or 0.5%.

According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth 760.51 crore on Tuesday, making them net sellers in the capital market.