Traders said, sustained foreign fund outflows however restricted rupee up move.Mumbai:The rupee appreciated by 7 paise to 70.34 against US dollar in opening trade on Friday, driven by gains in domestic equities and weakening of greenback in overseas markets.
The rupee opened strong at 70.38 at interbank forex market against previous close of 70.41 per dollar then gained further ground and touched a high of 70.34 amid positive opening in domestic equities, displaying gains of 7 paise against greenback.
On Wednesday, rupee had risen by 5 paise to close at 70.41 against US dollar.Forex dealers said, selling of American currency by exporters and easing crude prices supported rupee in early trade.
Meanwhile, brent crude, global benchmark, was trading lower at 61.57 per barrel lower by 0.18 per cent.
Traders said, sustained foreign fund outflows however restricted rupee up move.
Foreign funds pulled out Rs 344.58 crore from capital markets on a net basis, while domestic institutional investors purchased shares worth Rs 10.98 crore Thursday, provisional data showed.
Meanwhile, benchmark BSE Sensex was trading with gains of 76.24 points, or 0.20 per cent to quote at 36,179.14 while NSE Nifty was trading at 10, 836.90, up 15.30 points, or 0.14 per cent.