The rupee was trading 11 paise up at 64.13 against dollar in early trade on Tuesday, 25 April 2017 on account of selling of Amercian curreny by banks and exporters.
Meanwhile, domestic equity markets opened in green following firm Asian cues. The BSE Sensex opened 103.09 points, or 0.34 per cent, up at 30,021.49, while the NSE Nifty index opened 35.80 points, or 0.38 per cent, up at 9,339.85. The rupee opened 6 paise higher at 64.18 against dollar.
The local currency on Friday finished lower by 8 paise at 64.24 a dollar.
On the further movement of currency, Angel Broking in a research note said, “USD-INR spot is likely to appreciate tracking gains in Asian market equities.”
Foreign portfolio investors stood net sellers in domestic equity markets on Friday as they sold shares worth Rs 22.80 crore with gross purchases and gross sales of Rs 6398.12 crore and Rs 6420.92 crore, respectively.
Making a case for supportive exchange rate policy, Chief Economic Advisor Arvind Subramanian on Friday said the rupee should not be allowed to become too strong as it hurts exports and economy in general.