Rupee gains 3 paise to settle at 83.11 against US dollar

MUMBAI: The rupee continued its upward trend for the third consecutive session, gaining 3 paise to close at 83.11 against the US dollar on Tuesday. This rise was attributed to the positive performance of the equity market and increased foreign fund inflows. Forex traders also noted that the recent weakness in the US dollar and crude oil prices hovering around $77 per barrel supported the rupee.At the interbank foreign exchange market, the rupee started strong at 83.07 and traded between a high of 83.04 and a low of 83.13 against the US dollar throughout the session. It finally settled at 83.11, marking a 3 paise increase from its previous close. On Monday, the domestic currency had closed at 83.14, gaining 1 paisa.Market analysts emphasized that investors will closely monitor domestic inflation numbers and data from the US, which is set to be released later this week. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.17% higher at 102.10 on Tuesday. Additionally, Brent crude futures, the global oil benchmark, rose by 1.50% to $77.26 per barrel.In terms of the domestic equity market, the Sensex rose by 30.99 points, or 0.04%, to settle at 71,386.21 points. The Nifty also saw an increase of 31.85 points, or 0.15%, reaching 21,544.85 points.Exchange data revealed that foreign institutional investors (FIIs) purchased shares worth Rs 16.03 crore on Monday, following a previous session in which they bought equities worth Rs 1,696.86 crore.