Finance
The rupee pared early gains and settled 21 paise lower against the US dollar on Monday, tracking a rebound in the greenback overseas and a muted trend in domestic equities.
Risk aversion in international markets, as well as persistent foreign fund outflows, have weighed on investor sentiment, according to forex traders.
The rupee began the day at 81.29 against the US dollar in the interbank foreign exchange market, but quickly lost ground, falling to an intraday low of 81.73.
The Indian rupee eventually settled at 81.59, down 21 paise from its previous close.
It fell by 8 paise to close at 81.38 against the US dollar on Friday.
The dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.12% higher at 102.32.
Brent crude futures fell 0.49 percent to USD 84.86 per barrel, the global oil benchmark.
The rise in crude oil prices, as well as FII outflows, weighed on the domestic currency.
The dollar fell on Friday and early today after the University of Michigan survey reduced one-year inflation expectations to 4% in January, down from 4.4% in December. This has increased expectations for the US Federal Reserve to raise interest rates at a slower pace.
The 30-share BSE Sensex fell 168.21 points, or 0.28 percent, to 60,092.97, while the broader NSE Nifty fell 61.75 points, or 0.34 percent to 17,894.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 2,422.39 crore, according to exchange data.
Source:FE
