The rupee firmed up by 10 paise to 70.06 against the U.S. dollar in early trade at the Interbank Forex market on Tuesday on selling of the American currency by exporters and banks amid fresh foreign funds inflow. Besides, the dollar’s weakness against other currencies overseas gave the rupee strength, dealers said.
They said a record opening of the domestic equity markets, too kept the rupee firm.
On Monday, the rupee had retreated sharply to hit a record closing low of 70.16 against the dollar, plunging by 25 paise despite a huge rally in equities and easing worries over near-term monetary policy tightening by the US Fed.
Foreign institutional investors (FIIs) bought shares worth a net of ₹252.52 crore, while domestic institution investors (DIIs) accumulated shares to the tune of ₹1,117.24 crore on Monday, as per provisional data.