Rupee rises 24 paise to 95.72 against US dollar in early trade
At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar, then gained some ground to touch 95.72 against USD, registering a gain of 24 paise from its previous close
The Indian rupee strengthened by 24 paise to 95.72 against the US dollar in early trading on Monday, buoyed by a slight dip in crude oil prices and a positive move in domestic equities. Forex traders noted that early gains in the stock market and improved sentiment among foreign funds contributed to investor confidence, although sustained importer demand for dollars from oil firms and the overall strength of the US dollar index put downward pressure on the local currency.
At the interbank foreign exchange market, the rupee initially opened at 95.86 against the US dollar but gained some ground to reach 95.72, marking a 24-paise increase from the previous close. On Friday, the rupee closed 7 paise lower at 95.96 against the US dollar. On a weekly basis, the rupee ended at 95.89 after being supported near 96 last week.
Analyst Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, anticipates a fluctuation range of 95.60–96.50, with the 96.40–96.50 range posing significant resistance. The dollar index, which measures the greenback's performance against a basket of six currencies, stood at 100.31, rising by 0.09 percent.
Meanwhile, Brent crude oil, the global oil benchmark, slipped 2.10 percent to $101.69 per barrel in futures trading. Brent's price action over the past week was notably volatile, starting at $105.68 on Monday, surging to $108.75 on Tuesday after hitting a weekly peak of $109.45, and then falling sharply as worries about potential Saudi supply disruptions eased.
In the domestic equity market, the Sensex climbed 448.32 points to 74,743.28 in early trade, while the Nifty rose 50.3 points to 23,396.70. On a net basis, Foreign Institutional Investors (FIIs) invested ₹599.54 crore in equities on Friday, according to exchange reports. However, India's forex reserves fell by $4.924 billion to $780.782 billion over the week ending September 11 due to a decline in foreign currency and gold reserves, as reported by the RBI on Friday.
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