Due to the US dollar’s decline and a reduction in crude oil prices, the rupee gained 7 paise to settle at 83 (provisional) versus the US dollar on Monday. Sharp increases were nonetheless restrained, according to currency dealers, by poor local markets and outflows of foreign funds.
The opening price of the local currency versus the US dollar in the interbank foreign exchange market was 83.01. The unit reached a low of 83.02 and a high of 82.98 during the same day.
After closing at 83.07 versus the dollar, the local currency eventually ended at 83 (provisional), up 7 paise over the previous level.
Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, stated, “We expect the rupee to trade with a slight positive bias, positive global equities, and a slight correction in the greenback. However, any bounce back in crude oil prices amid ongoing geopolitical tensions in the Middle East and selling pressure from foreign investors may weigh on the rupee at higher levels.”
The CPI and IIP figures for India may serve as a guide for traders.
It is anticipated that headline inflation would decrease from 5.69 percent to 5.09 percent. Ahead of Tuesday’s US inflation report, investors would be on guard, according to Choudhary, who also said that the USD-INR spot price is predicted to move between Rs 82.80 and Rs 83.20.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.04 percent at 104.15 in the meanwhile.
The benchmark for global oil, Brent crude futures, dropped 0.51% to USD 81.77 a barrel.
Regarding the local stock market, the Sensex dropped by 523 points, or 0.73 percent, to 71,072.49. At 21,616.05., the Nifty dropped 166.45 points, or 0.76 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.
In the meanwhile, the Reserve Bank of India said on Friday that the country’s foreign exchange reserves increased by USD 5.736 billion to USD 622.469 billion for the week that ended on February 2.
The total reserves rose to USD 616.733 billion last week, a rise of USD 591 million.