Indian rupee appreciated by 3 paise to 67.22 against the US dollar in opening trade at the Interbank Foreign Exchange (Forex) market on Tuesday owing to a firm start at the domestic equity markets amid selling in dollar by banks and exporters. The Indian currency had closed 12 paise down at 67.19 on Monday. Sensex opened 43.39 points up at 27,790.05, while Nifty opened 5.60 points up at 8514.30.
At 9.32 am, Indian rupee was trading 2 paise up at 67.17 against the American currency.
The performance of prominent currencies overseas also supported the Indian rupee. China’s yuan steadied against the dollar, a day after slipping below the psychologically important 6.7 level for the first time in more than five years.
The dollar on Monday after climbing to more than three-week highs against the yen fell 0.3 per cent at 105.90 yen. The euro was steady against the dollar at $1.1076.
Reserve Bank of India governor Raghuram Rajan on Monday said that the current value of Indian rupee is well appropriate and devaluation of the currency will lead to inflation.
“Rajan provided a predictability in Rupee where one was reasonably sure that INR will neither appreciate too much nor depreciate too much and will gradually move to a depreciated higher range thanks to REER and inflation differential, ” Samir Lodha, MD, QuantArt Market Solutions said.