Mumbai: The rupee appreciated by 12paise against the dollar in early trade on Tuesday amid hopes of fresh capital inflows by funds and firm opening on the domestic stock markets in line with higher Asian shares.
At the Interbank Foreign Exchange (Forex) market, the domestic currency traded higher at Rs48.80 against the dollar, a rise of 12paise over the Monday’s close of Rs48.92/93.
Forex dealers said dollar selling by banks on expectations of capital inflows by funds after Asian stock markets firmed up raised hopes that the domestic bourses may open in positive zone.
Dollar’s narrow movements against other regional currencies also supported the Indian rupee, they said.
Among Asian markets, Hong Kong’s hang Seng was up 1.17%, while Japan’s Nikkei was up almost 2% in early trade on Tuesday.