Rupee rises 7 paise to 94.05 against US dollar during early trade

The rupee traded in a narrow range and gained marginally by 7 paise to 94.05 against the US dollar in early trade on Friday, as the support from foreign fund inflows was negated by broad-based strength in the dollar. Forex traders said the rupee is showing positive momentum, driven by consistent foreign investments, lower crude oil prices, and a favourable external environment. However, strengthening of the American currency in the overseas market weighed on investors' sentiment. In the interbank foreign exchange market, the rupee opened at around 94.07, then touched 94.05, up 7 paise from its previous closing level. On Thursday, the rupee depreciated 41 paise to close at 94.12 against the US dollar. "The external environment remains supportive of the rupee, backed by softer crude oil prices and renewed FII inflows. However, after appreciating sharply from 97.00 to around 94.00, a near-term pullback could push USD/INR towards 94.5095.00. "Such a move should be viewed as a ...