Finance
On Monday, the rupee rose 3 paise to close at 82.37 (provisional) against the US dollar, as a positive trend in domestic equities and a weak dollar boosted investor sentiment.
The local currency opened at 82.36 against the US dollar on the interbank foreign exchange market and eventually settled at 82.37 (provisional) against the greenback, up 3 paise from its previous close of 82.40.
Against the dollar, the rupee reached a high of 82.27 and a low of 82.42 during the trading session.
The dollar index, which measures the strength of the US currency against a basket of six currencies, fell 0.02 percent to 103.09.
Brent crude futures rose 0.68 percent to USD 75.50 per barrel, the global oil benchmark.
According to Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, the Indian rupee
appreciated amid positive domestic markets and a soft Dollar. However, positive crude oil prices capped sharp gains.
“We expect Indian Rupee to trade with a slight negative bias on month end Dollar demand from importers and sustained FII outflows. Worries over credit crunch in the US and Europe due to the banking crisis may lead to risk-off sentiments,” Choudhary said.
Choudhary further noted that renewed geopolitical tensions on Russia’s nuclear threat may lead to safe-haven demand for the dollar.
“We expect USD/INR spot price to trade in a range of Rs 81.80 to Rs 82.80 in the near term,” Choudhary added.
The 30-share BSE Sensex rose 126.76 points, or 0.22 percent, to end at 57,653.86, while the broader NSE Nifty rose 40.65 points, or 0.24 percent, to 16,985.70.
According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital market on Friday, offloading shares worth Rs 1,720.44 crore.
Source:FE
