Mumbai: The Indian rupee rose against the US dollar in early trade on Monday amid a weakening US dollar against international currencies. However, a sharp fall in the domestic equity markets in morning trade, a decline in the country’s forex reserves and sustained FII outflows prevented further gains of the Indian currency.
At the interbank foreign exchange, the domestic currency opened at 86.58, up 10 paise against the US dollar, but gave up initial gains to reach 86.67, just 1 paisa higher than Friday’s close. On Friday, the Indian rupee pared initial gains and settled 4 paise lower at 86.68 against the US dollar.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was trading 0.39 per cent lower at 106.19.Foreign institutional investors (FIIs) offloaded Indian equities worth Rs 3,449.15 crore on a net basis on Friday.
The latest RBI data released on Friday showed India’s forex reserves dropped by $2.54 billion to $635.721 billion in the week ended February 14, snapping the three-week streak of increase. In the previous reporting week, the reserves had increased by $7.654 billion to $638.261 billion.
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