In early trading, the rupee advances 8 paise to 82.99 versus the US dollar
Against the US dollar, the rupee gained 8 paise to 82.99 in early trading on Monday due to the US currency’s decline in international trade.
The local currency began trading at the interbank foreign exchange at 83.01 and reached 82.99 against the US dollar in the opening trades. This is an increase of 8 paise from the previous close.
The local currency’s closing value versus the dollar on Friday was 83.07.
For further clues, investors are still expecting US inflation data on Tuesday.
“The dollar index is anticipated to fall around 102.50 levels, which would drive the rupee higher, if the inflation prints out that are lower than predicted. Conversely, in the event of a better release, the DXY (US Dollar Index) might rise as high as 105 levels, but an upward breach of 83.25 levels for USDINR is unlikely, according to MD Amit Pabari of CR Forex Advisors.
In the meanwhile, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.07 percent at 104.03.
The benchmark for global oil, Brent crude futures, fell 0.51% to USD 81.77 a barrel.
Within the local equities market, the 30-share BSE Sensex was trading at 71,454.25, down 140.34 points, or 0.20 percent.
To 21,743.15, the whole NSE Nifty fell 39.35 points, or 0.18 percent.
According to exchange statistics, Foreign Institutional Investors (FIIs) purchased shares worth Rs 141.95 crore on Friday, making them net purchasers in the capital markets.
As for India, the Reserve Bank said on Friday that the country’s foreign exchange reserves increased by USD 5.736 billion to USD 622.469 billion for the week ending February 2.
The total reserves rose to USD 616.733 billion last week, a rise of USD 591 million.
