Rupee stays strong, gains 6 paise against dollar in early trade

The rupee strengthened by 6 paise to 67.37 against the dollar in early trade today at the Interbank Foreign Exchange ahead of GDP data scheduled to be released later today.

Forex dealers said besides selling of the American currency by exporters and banks, weakness in the dollar against other currencies supported the rupee.

Furthermore, expectations of robust GDP growth and a higher opening in the domestic equity market, influenced the rupee uptrend, they added.

Yesterday, the rupee had ended with a solid 43 paise gain against the American currency at 67.43 after traders unwound bullish dollar positions.

Meanwhile, the benchmark BSE Sensex rose by 246.06 points, or 0.70 per cent, at 35,152.17 in the opening trade today.

Benchmark indices on Wednesday closed lower for the second straight day today as political uncertainty in Italy and flaring up of trade tensions between the US and China triggered a global sell-off.

Moody's cutting India's 2018 GDP growth forecast added to the sombre mood, with no let-up in selling by participants ahead of May derivatives expiry, brokers said.

The BSE Sensex slipped over 43 points in volatile trade to end at 34,906.11, while the 50-share Nifty shed 18.95 points to finish at 10,614.35.

Asian markets nosedived after US President Donald Trump unexpectedly ratcheted up trade tensions with China.

The US imposed a hefty 25 per cent tariff on USD 50 billion worth of Chinese goods and tightened its noose against China's alleged theft of US' intellectual property rights.

Investors also reacted with caution after the populist parties' bid to take power in Italy collapsed, leading to speculations over the country's Euro membership.

The 30-share Sensex opened on a bearish note at 34,876.13 and slipped further to hit a low of 34,735.11 largely on sustained foreign fund outflows amid a global sell-off.