Rupee falls 21 paise to 94.97 against US dollar in early trade
Forex traders said a positive domestic market and softening of crude oil prices cushioned the downside.
The Indian rupee weakened by 21 paise to 94.97 against the US dollar in early trading on Monday, as the American currency gained strength in global markets. Forex traders attributed the dip to a robust domestic market and falling crude oil prices. The rupee opened at 94.90 at the interbank foreign exchange market before dipping to 94.97 against the US dollar.
In a week that saw the rupee settle at 94.76 against the American currency on Friday, the foreign exchange market is expected to see USDINR trade within the range of 94.40–95.60 after concluding October near 94.95. RBI interventions and market operations have helped mitigate volatility, with reserves of approximately USD 720 billion, according to Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO.
He added that a softer crude market would bolster the rupee, while a resurgence in oil prices could push USDINR closer to the upper end of the range. Meanwhile, the dollar index, which measures the greenback's strength against six major currencies, stood at 101.94, up by 0.07 percent. Brent crude oil, the global benchmark, saw a 3.07 percent decline to USD 109.95 per barrel in futures trade.
On Friday, India's forex reserves decreased by USD 1.269 billion to USD 719.748 billion, while in the preceding week, they fell by USD 5.011 billion to USD 721.016 billion. Foreign Institutional Investors (FIIs) acted as net buyers, purchasing equities worth Rs 3,598.54 crore on a net basis on Friday. The domestic equity market witnessed the Sensex rising by 764.72 points to 75,216.80, and the Nifty climbing by 201.40 points to 23,255.90.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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