Indian rupee: Rupee opens 8 paise up at 75.63 against dollar

The rupee on Tuesday opened 8 paise higher at 75.63 against the US dollar, following a rise in domestic equity markets and reopening of the economy.

The domestic currency is back on the upwards trajectory after a day of pause. The dollar index, which measures the strength of the US dollar against a basket of six currencies, dropped 0.12 per cent, as commodity currencies inched up, with the Australian dollar rising 0.4 per cent against the greenback.

“Apart from Covid-19 developments, macroeconomic figures and central bank meeting will be in focus. For USDINR, 75.94 and 76.32 may act as a crucial level in the upside while 75.61 and 74.34 will act as major support levels,” said Geojit Financial Services.

On the domestic front, market participants will be keeping an eye on inflation and industrial production numbers which will be released next week. It is likely that the industrial production number would be disappointing and it could keep the rupee weighed down.

FIIs were sellers in the capital market segment on May 4 as they sold shares worth Rs 1373.98 crore, according to NSE provisional figures. DIIs, on the other end, were sellers to the tune of Rs 1661.61 crore for the same period.

On the data front, domestic manufacturing PMI (Apr) released yesterday fell well below its 50-mark to 27.4 in April against 51.8 in March amid lockdown concerns. Oil prices rebounded as more countries easing lockdowns and on the expected production cuts from largest oil producers.