Mumbai: On Tuesday, The rupee strengthened by 6 paise at 71.12 against the dollar in opening trade maintaining its upward trend for the sixth straight day on continued selling of the US currency by exporters and banks. Besides, optimism ahead of index of industrial production (IIP) numbers for December and retail inflation for January, and the dollar weakening against some other currencies overseas, also supported the rupee, forex dealers said.
It is favourabl efor market as a positive opening in the domestic equity market gave the uptrend some momentum, they added. The rupee opened lower at 71.21, but recovered to trade 6 paise higher at 71.12 against the dollar. The benchmark BSE Sensex rose 22.20 points, or 0.06 per cent, to 36,417.23 in early session Tuesday. On Monday, the rupee had ended higher by 13 paise to close at 71.18 against the dollar on easing crude oil prices, even as the greenback strengthened vis-a-vis other major currencies.
Earlier on Monday, rising for the fifth straight day, the rupee firmed up by another 9 paise to 71.22 against the dollar in opening trade Monday on increased selling of the American currency by exporters amid foreign fund inflows. Forex dealers said weakness in the dollar against some other currencies overseas and foreign capital inflows in the domestic equity markets supported the rupee, but a lower opening of the domestic equity market capped the gains.