Finance
On Monday, the rupee fell 1 paisa to 83.03 (provisional) against the US dollar, as encouraging signs from domestic equity markets failed to alleviate investors’ fears over rising crude costs.
A weak US dollar against major rivals overseas, on the other hand, strengthened the home currency and limited the loss, according to forex traders.
The local currency opened at 82.93 versus the US dollar on the interbank foreign exchange market and fluctuated between a high of 82.83 and a low of 83.06.
The rupee eventually finished at 83.03 (provisional) paisas weaker than the previous close.
On Friday, the Indian rupee gained 21 paise to settle at 83.02 against the US dollar.
“We expect the rupee to trade with a slight positive bias on the soft US dollar, positive domestic markets and a correction in crude oil prices. However, concerns over global economic slowdown and rising expectations of a rate hike by FOMC amid strong economic data from the US may cap sharp gains,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.
Choudhary said that traders may remain cautious ahead of inflation data from India and the US later this week. “USD/INR spot price is expected to trade in a range of Rs 82.40 to Rs 83.30.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.42 per cent to 104.65.
Brent crude futures, the global oil benchmark, were down 0.3% at USD 90.38 per barrel.
On the local equities market, the BSE Sensex reclaimed the 67,000 mark, closing 528.17 points or 0.79 percent higher at 67,127.08. The NSE Nifty gained 176.40 points, or 0.89 percent, to 19,996.35.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth Rs 224.22 crore.
Source:FE
