Rupee rises in early trade; custodians sell dollars

Mumbai: The rupee is marginally higher at 60.03/04 versus its Wednesday close of 60.07/08, as custodian banks sell dollars. Foreign institutional flows continue to hurt the pair. Overseas investors bought Indian shares worth $142.8 million on Tuesday, provisional exchange data shows. The BSE Sensex is trading up 0.65 per cent.

USD/INR is seen trading in a range of 59.90 to 60.10 during the session, dealers say. Traders expect the RBI to step up dollar purchases should foreign fund inflows continue through the day.

The RBI bought a net $14.51 billion in the forward market in May compared with net forward dollar sales of $6.09 billion in April, as per official reports.