The Indian rupee fell 6 paise to 74.26 per dollar in early trade on Monday, as rising crude oil prices weighed on investor sentiment. The rupee opened lower at 74.24 against the dollar on the interbank foreign exchange, then fell further to 74.26, a 6 paise drop from its previous close.
The rupee had settled at 74.20 against the US dollar on Friday. ‘This week’s obvious risk for the rupee is persistently higher crude oil prices. This, combined with market expectations for a slightly stronger dollar in the short term, will continue to weigh on the local currency.’ According to a research note from Reliance Securities.
Brent crude futures fell 0.22 percent to USD 76.01 per barrel, the global oil benchmark. Asian currencies have started flat to marginally weaker against the greenback this morning, which could limit the upside bias, according to the note.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was trading 0.02 percent higher at 91.86. On the domestic equity market, the BSE Sensex was down 39.17 points, or 0.07 percent, at 52,885.87, while the NSE Nifty was down 6.85 points, or 0.04 percent, at 15,853.50.
According to exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 678.84 crore.
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