The rupee weakened by 11 paise to trade at 83.45 (provisional) for the dollar on Monday due to an increase in crude oil prices in the international market and other factors. Nevertheless, constant values in home-based stock exchange, manufacturing PMIs, and weakened US dollar against other currencies in the global forex market helped curb a much worse decline, forex traders said. Specifically, at the interbank foreign exchange market, the local unit opened at 83.39, with the highest level of reviewing at 83.38 and a low of 83.47 to the greenback during the session. Finally, the fixed INR vs USD currency standing was 83.45 (provisional), out of its previous close by 11 paise.
On Friday, the rupee had strengthened by 11 paise to 83.34 against the US dollar. The external forces, which mainly contributed to the recent oscillations of the INR vs USD rate, are such factors as oil prices, which have reached almost two months’ highs, and US bond yields staying above 4 per cent, which puts pressure on Asian currencies. Nevertheless, signs of gradual improvement in the domestic markets, along with the slight rise in the manufacturing Purchasing Managers’ Index (PMI), have offered some relief to the rupee.
Also, the dollar index, which depicts the greenback against six other currencies, stood at 105. 24, down by 0.28 percent. This decline in the dollar index also further assisted in moderating the rupee’s decline further. Brent crude futures, the international benchmark for oil, increased by 0.41 percent to USD 85.35 per barrel, which has affected the rupee negatively.
In the domestic equity market, a peer performance was noted in the benchmark 30-scrip sensitive index of the BSE, with the Sensex going up by 443.46 points, or 0.56 percent bringing the market’s closure to 79,476.19 points. Likewise, the broader 50-share NSE Nifty ended up 131.35 points, or 0.55 percent, higher at 24,141.95 points.
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