In the early session on Monday, the rupee fell 4 paise to 83.32 against the US dollar, mirroring a downward trend in local stocks. Forex brokers said that persistent foreign fund withdrawals weighed on the local currency. The rupee opened at 83.31 against the dollar on the interbank foreign exchange market. It fell to a low of 83.32 in early trade, a 4 paise drop from its previous close.
On Friday, the rupee settled at 83.28 against the American currency. “We expect the RBI to intervene to bring it within the 83.20-83.30 range. We otherwise expect a range-bound session with volumes being low on account of the festive season,” India Forex And Asset Management Pvt Ltd (IFA Global) said in a research note.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was trading at 105.82, down 0.04 percent. Brent crude futures fell 0.93 percent to USD 80.67 a barrel, the global oil benchmark. The BSE Sensex was trading 262.56 points, or 0.40 percent, lower at 64,996.89 points, while the broader NSE Nifty was down 70.55 points, or 0.36 percent, at 19,455.00 points.
According to exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 190.06 crore. The Reserve Bank of India reported on Friday that India’s currency reserves increased by USD 4.672 billion to USD 590.783 billion for the week ending November 3. a portfolio of foreign currency assets, a crucial part of the reserves, rose by USD 4.392 billion, as per the central bank.
Source:FE