Rupee rises 27 paise to 84.96 against US dollar in early trade

MUMBAI: The rupee appreciated 27 paise to 84.96 against the US dollar in early trade on Tuesday, supported by robust foreign fund inflows, stronger domestic data, and easing global tensions.

Forex traders said India’s manufacturing and industrial production, both expanded by 3 per cent, reflecting the health of domestic demand. Moreover, a strong rally in domestic equities driven by a surge in foreign fund flows further boosted sentiments.

However, caution lingers, as any escalation in tensions between India and Pakistan could swiftly reverse gains and pressurise the rupee, much like past geopolitical episodes, they noted. PTI