The rupee stood firm at 5 paise, appreciating 83.39 against the US dollar in trades that opened on Monday, the positive trend in domestic equities being the main factor. Forex analysts have observed that there is a fair amount of strengthening of the Indian currency, as the US dollar and crude oil prices went down from the recent highs. In the interbank foreign exchange market, the rupee opened at 83.40 against the dollar, later hitting 83.39 in initial trading, representing a 5 paise pickup from its last close. On Friday, the rupee cleared 8 paise of accumulation, leading to closing at 83.44 against the US dollar.
Forex traders speculated that the Reserve Bank of India may have intervened to stabilize the Rupee. Meanwhile, India’s foreign exchange reserves declined by $5.401 billion to $643.162 billion for the week ending April 12, as per the Reserve Bank’s report on Friday. However, overall reserves increased by $2.88 billion to a record high of $648.562 billion in the previous reporting week. The dollar index, reflecting the dollar’s strength against six major currencies, was trading at 106.07, down 0.07 percent.
After changing hands, Brent crude futures, the international oil reference, fell 0.76 percent to $86.63 per barrel. At home, equity markets held up well with the BSE Sensex gaining 295.86 points or 0.40 percent at 73,384.19 and the Nifty inched 106.00 points or 0.48 percent at 22,253.00 higher in the early session on Monday.
The net sellers of Foreign Institutional Investors (FIIs) in the Indian capital markets identified themselves as worth Rs 129.39 crore, as per data stated by the exchange. In the times when FIIs were keen on investing in emerging economies, this positive attitude from them was a main factor that determined bullish trend growth.
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