On Monday’s morning trading, the rupee depreciated by 5 paise to 83.43 against the US dollar after the US dollar surged and saw the foreign fund flow out of equities in the market. But on a positive note, stocks in local equity and the decline in international crude oil prices have also, as per forex traders, helped to keep most of the Indian currency on the stronger side.
The rupee started weak at 83.39 against the dollar at the interbank foreign exchange and swayed weaker to 83.43, recording a 5-paise lowest point as compared to the previous close of 83.38. In a contrasting move to this last Friday, the rupee was down by 10 paise to close off at 83.38 against the US dollar.
The US dollar index, which measures the US dollar‘s strength against six international currencies, gained 0.05% to make 105.86 at the last count. Experts said that the dollar’ and its strength must be credited to the positive global tendencies that enjoyed the support of the world’s greatest economy. Moreover, this shall assist in the refurbishment of the idea that the US Federal Reserve would be cutting the interest rates.
Meanwhile, Brent crude futures, the global oil benchmark, dropped by 0.92% to $88.68 per barrel. In the domestic stock market, the 30-share BSE Sensex rose by 271.80 points or 0.37% to 74,001.96, while the broader NSE Nifty climbed by 72.45 points or 0.32% to 22,492.40. Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth Rs 3,408.88 crore, as per exchange data.
Underlying the rupee’s depreciation are the factors global as well as domestic that affect investment and in turn, the movements in the currency and equity markets, which the investors closely monitor at a time when the economy remains on trends and geopolitical events.
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