The rupee fell 9 paise to 79.03 versus the US dollar in early trade on Monday, as continued foreign money outflows impacted market morale. According to forex dealers, the local currency is benefiting from the fall in crude oil prices. However, inflation and GDP concerns in India and abroad may limit the appreciating bias, they noted. The rupee began at 78.97 versus the US dollar on the interbank foreign exchange, then slid to 79.03, a 9-paise fall from the previous close. On Friday, the rupee finished at 78.94 versus the US dollar.
‘Because today is a US holiday, there will be no USD currency demand. Perhaps we will see some lower levels for the pair towards 78.80. Importers could take advantage of the dips to purchase their next 10-15 days of exposure, while exporters should sell the upticks towards 79.20 for short-term exposure ‘, Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, agreed.
The 30-share Sensex was down 20.63 points, or 0.04 percent, at 52,887.30, while the wider NSE Nifty was down 22.65 points, or 0.14 percent, at 15,729.40. In the meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was at 105.14.
Brent crude futures dipped 0.08 percent to $111.54 a barrel, the global oil benchmark. According to exchange statistics, foreign institutional investors continued to be net sellers in the capital market on Friday, selling shares worth Rs 2,324.74 crore. Meanwhile, the Reserve Bank of India said that the country’s foreign exchange reserves climbed by $2.734 billion to $593.323 billion for the week ended June 24 due to an increase in core currency holdings.
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