In early Tuesday trade, the Indian rupee experienced a 4 paise decline against the US dollar, reaching 83.41. This drop was attributed to heightened demand for the American currency among importers. The rupee’s initial value was 83.38 per dollar, deviating from the previous day’s closing rate of 83.37. Simultaneously, the dollar index, assessing the greenback against six currencies, showed a 0.09% decrease, settling at 103.62.
Forex analysts highlighted a wait-and-see approach among investors, anticipating signals from the Reserve Bank of India’s forthcoming monetary policy decision. The Monetary Policy Committee, commencing its bi-monthly review on Wednesday, is set to unveil its verdict on Friday. Despite the rupee closing at 83.38 on Monday and domestic equity indices reaching record highs, the market remained watchful.
Brent crude futures, the global oil benchmark, experienced a marginal 0.03% dip, resting at $78.01 per barrel. Shifting to the domestic equity scene, the Sensex surged by 416.59 points (0.60%) to 69,281.71, while the Nifty 50 recorded a 0.64% gain, adding 131.95 points to reach 20,818.75. Foreign institutional investors displayed positive activity on Monday, netting buyers in the capital market with shares amounting to ₹2,073.21 crore, as per exchange data.
The backdrop of these market movements underscores the intricate interplay between currency, oil, and equity markets. Investors, in particular, are closely monitoring not only the forex dynamics but also the upcoming RBI policy decision, recognizing its potential impact on the broader financial landscape. As the market navigates these variables, stakeholders remain attuned to global cues while gauging the resilience of the Indian financial ecosystem.
Read More: Rupee Weakens by 8 Paise, Closes at 83.37 Against US Dollar
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