Indian Rupee vs Dollar: Rupee continues to rise against the US dollar, gains of three paise in early trade

The rupee appreciated by 3 paise to 82.40 against the US dollar in early trade on Tuesday on positive macroeconomic data and a firm trend in domestic equity markets.
The rupee is trading in a narrow range against the American currency as investors await cues from the release of US inflation data, which may impact the policy stance of the Federal Open Market Committee (FOMC).
At the interbank foreign exchange, the rupee opened at 82.42 against the dollar and then recovered to 82.40, registering a gain of 3 paise from its previous close. The rupee touched a low of 82.46 in early trade. On Monday, the rupee had closed at 82.43 against the American currency.
Retail inflation eased to a 25-month low of 4.25 percent in May on softening prices of food and fuel articles. India's industrial output grew by 1.7 percent in March 2023 to 4.2 percent in April, mainly due to a good performance by the manufacturing and mining sectors, according to official data released on Monday.
Traders believe that investors will remain cautious in view of the latest stance of the US Fed. On the other hand, the delayed onset of monsoon may impact food inflation in the coming period. Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, fell 0.20 percent to 103.44.
Global oil benchmark Brent crude futures rose 0.71 percent to $72.35 per barrel. Foreign institutional investors (FIIs) were net sellers in the capital market on Monday, selling shares worth Rs 626.62 crore, according to exchange data.