Indian rupee declined on Monday and lost 3 pais and LEP to close at 89.70 (provisional) to the US dollar as an appreciation in local equity markets was offset by an increase in crude oil prices and uncertainty over US India trade negotiations.
In the interbank foreign exchange market, the rupee opened at 89.53 and improved further to hit an intraday high of 89.45 which was equivalent to 22 paise against its last close. But the currency was unable to retain such profits and fell during the second half of the session. The rupee had appreciated strongly on Friday by nearly 53 paise to close on 89.67 against the dollar.
The players of the Forex market opined that a weaker US dollar index was offering some relief to the domestic currency in the lower reaches, but the global oil prices were limiting any long-term recovery. The dollar index that tracks the greenback against a group of six major currencies fell by 0.08 per cent to 98.52. Meanwhile, the world oil benchmark, the Brent crude futures, has increased 0.86 per cent to USD 61 per barrel, pressuring the rupee.
Benchmark indices were performing very well on the domestic equity side. BSE Sensex rose by 638.12 and closed at 85,567.48, and NSE Nifty increased by 206 points and closed at 26,172.40. In line with sentiment, the foreign institutional investors (FIIs) became net buyers in the equity market buying shares in the amount of 1,830.89 crore on Friday, as per the exchange data.
There is also close monitoring of macroeconomic events in the United States by the market participants. Analysts indicated that analysts in the near future the rupee may trade with a slight positive bias, owing to weak US dollar and a strong domestic equities.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News