The Indian rupee remained within a range against the US dollar during the hours of Monday’s trading session. This was influenced by the strength of the US dollar and negative sentiment in the stock market. The rupee started lower at 83.26 against the US dollar compared to its closing rate of 83.25 on Friday, with a difference of just one paise.
The US dollar showed an increase of 0.03% in the dollar index, which measures its strength against six world currencies, reaching 106.59. This slight rise in the value of the dollar, combined with other factors, contributed to the subdued performance of the rupee.
Throughout the trading session, there were challenges for the rupee due to continued outflows of funds and the persistent strength of the US currency in markets. Traders observed that Asian currencies were experiencing declines while European currencies remained under pressure as a result of hovering around 106.57 on the dollar index. Additionally, there were impacts on market sentiment as Brent oil prices dipped to $89.25 per barrel and gold crossed $2,000 per ounce.
On a note, for the rupee, there was a decrease in crude oil prices. The price of Brent crude oil experienced a decrease of 1.36% to reach $89.25 per barrel, while the US West Texas Intermediate crude oil dropped by 1.54% and reached $84.22 per barrel. This drop in oil prices brought some relief to the currency since India heavily relies on imported oil.
Within the country, the stock market indices showed fluctuations due to the influence of signals. The 30-share BSE Sensex saw fluctuations and was trading at 63,961.11, up 178.31 points (0.28%), while the broader NSE Nifty 50 rose by 44.50 points (0.23%) to reach 19,091.75.
In a separate economic development, India’s foreign exchange reserves experienced a decrease of $2.36 billion, totaling $583.53 billion during the week ending October 20, according to data released by the Reserve Bank of India. This reduction can be attributed to various economic factors and external pressures.
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