The rupee saw a 4-paise depreciation, reaching 83.02 against the US dollar early on Monday, influenced by a robust American currency and escalating international crude oil prices. Despite these factors, positive signals from the domestic stock markets and a influx of foreign investments provided support to the Indian currency, according to forex traders. The forthcoming monetary policy decision by the Reserve Bank later in the week will be closely monitored by investors.
On the interbank foreign exchange, the rupee commenced at 83.03 against the dollar, touching a low of 83.04 before recovering slightly to settle at 83.02, marking a 4-paise decline from the previous close. On Friday, the rupee remained steady at 82.98 against the dollar, following a 6-paise increase on the day of the Union interim budget, which hinted at accelerated fiscal consolidation and reduced borrowings in the next fiscal year.
Simultaneously, the dollar index, gauging the greenback’s strength against six currencies, recorded a 0.11% rise at 103.89. In the global oil market, Brent crude futures, the benchmark, ascended by 0.38% to reach USD 77.62 per barrel.
Within the domestic equity scenario, the 30-share BSE Sensex exhibited a 0.17% increase at 72,209.90 points, while the broader NSE Nifty advanced by 0.24% to 21,906.70 points. Foreign Institutional Investors (FIIs) demonstrated net buying in the capital markets on Friday, acquiring shares worth Rs 70.69 crore, according to exchange data.
Moreover, India’s forex reserves witnessed a USD 591 million surge, reaching USD 616.733 billion for the week concluding on January 26, as reported by the Reserve Bank of India (RBI) on Friday. As economic indicators and global dynamics continue to shape currency movements, the rupee’s performance remains subject to various factors, including oil prices, foreign investment patterns, and domestic policy decisions.
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