NEW DELHI: The rupee strengthened in early trade on Tuesday, recovering from the previous session’s decline, as softer crude oil prices on Monday and continued foreign fund inflows into domestic equities supported the currency.The Indian currency gained 12 paise to 94.72 against the US dollar, after opening at 94.68 and touching an intraday high of 94.60 at the interbank foreign exchange market. It had closed 8 paise lower at 94.84 on Monday, following a 50-paise appreciation in the previous session on Friday.The gains came as Brent crude, the global oil benchmark, traded marginally lower at $104.76 per barrel. Recent talks between Iranian and Qatari officials have raised hopes of progress towards resolving the West Asia conflict and stabilising energy supplies.Foreign investment flows also provided support. Foreign Institutional Investors (FIIs) remained net buyers for a second consecutive session on Monday, purchasing equities worth Rs 3,114.68 crore on a net basis, according to exchange data.However, the rupee’s gains remained limited by a firm US dollar, with investors cautious ahead of the crucial US midterm elections. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.03 per cent at 101.65.Domestic equities were also trading higher, with the Sensex rising 551.77 points, or 0.73 per cent, to 76,244.55 and the Nifty gaining 129.60 points, or 0.55 per cent, to 23,570.40 in early trade.
