NEW DELHI: Indian rupee opened nearly 5 paise up at 68.11 against dollar on Tuesday on account of some selling of American currency by banks and exporters. Meanwhile firm opening of domestic equity markets also supported sentiments.

At 9.15 am, rupee was trading 3 paise up at 68.13 against dollar. Benchmark equity indices BSE Sensex and NSE Nifty were up by 163.02 points and 60.05 points at 25928.16 and 7,989.15.

On Monday, the local currency slipped for the second straight day and closed 3 paise down at 68.16 against dollar. In cross-currency trades, rupee gained against the pound sterling to finish at 84.14 against 84.66 on last Friday, but fell against the euro to settle at 72.79 as against 72.37. It strengthened further against the Japanese yen and close at 61.62 against 61.72 per 100 yens earlier.

According to market experts, sustained foreign money outflows mainly affected the rupee movement against the dollar on Monday. However, weakness of dollar in the international market capped the rupee fall against the dollar. Foreign portfolio investors stood net seller on Monday and sold shares worth Rs 873.11 crore, according to the data available with NSDL.

HDFC Securities in a research note said, "We advise trader to remain long in USDINR Nov. Fut. for new all time high target above 69.21, keeping a stop loss at 67.50 on closing basis."

 
The 10-year benchmark bond yield eased further and opened at 6.28 per cent on Tuesday against previous close of 6.30 per cent

Sources:economictimes.indiatimes.com