Rupee rises 12 paise to USD 85.42 against US dollar in early trade

The rupee strengthened to 85.42 against the dollar, propelled by robust foreign fund inflows and a weaker dollar index. Gains were limited by a widening trade deficit, a sluggish equity market start, and rising Brent crude prices. India's April exports saw a 9.03% increase, but the trade deficit hit a five-month high at USD 26.42 billion due to increased imports.