Rupee rises 12 paise to 75.49 against US dollar in early trade

The rupee appreciated 12 paise to 75.49 against the US dollar in early trade on Wednesday tracking gains in Asian currencies and the equity market amid sustained foreign fund inflows.

The rupee opened strong at 75.49 against the US dollar, up 12 paise over its previous close.

It had settled at 75.61 against the greenback on Tuesday.

Forex traders said positive domestic equities, persistent foreign fund flows and the revival of business activity supported the rupee.

"Asian currencies appreciated against the greenback this Wednesday morning and could also lend support to the domestic unit," Reliance Securities said in a research note.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.01 per cent to 96.31.

"The greenback declined this morning ahead of the US Federal Reserve's monetary policy decision and release of summary of economic projections," the note added.

The 30-share BSE benchmark Sensex was trading 94.58 points higher at 34,051.27 and broader NSE Nifty rose 21.30 points to 10,067.95.

Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 490.81 crore on Tuesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 1.41 per cent to USD 40.60 per barrel.

Meanwhile, investor sentiments remain fragile amid rising coronavirus cases across the world.

The number of cases around the world linked to the disease has crossed 72.44 lakh and the death toll has topped 4.11 lakh.

In India, the death toll due to COVID-19 rose to 7,745 and the number of infections rose to 2,76,583, according to the health ministry.