Rupee trades higher on positive equities

The partially convertible Indian rupee rose by 10 paise to Rs 52.86 per dollar in early trade on Monday at the Interbank Foreign Exchange.

The rupee sentiment was boosted by weaker dollar and positive opening in domestic stock market. Rupee generally follow the footsteps of Euro, if euro is rising against the dollar, same trend can be visible in the Indian currency as well. The Indian rupee gained confidence after euro and other currencies posted gains against US dollar.

Currency traders and banks are refraining from taking any major positions as most of the world markets are closed today on account of Christmas.

The Indian currency could face downward pressure later in a day if oil marketing companies step up for dollar purchases for their import payments.

The rupee had closed 24 paise lower at Rs. 52.96/97 per US dollar in the previous session on Friday.

At 12.20 pm IST rupee was seen trading at 52.83 per dollar up by 10 paise.

Meanwhile, The benchmark Sensex rose by 182 points . The 50-share NSE Nifty rose by 50.15 points.

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