The rupee strengthened on Monday due to strength in the domestic equity markets and weakness in the US dollar.
On Friday, the rupee had closed at 82.06 against the US dollar.
The rupee on Monday appreciated by 15 paise to close at 81.91 (provisional) against the US dollar as a firm trend in the domestic equity market and easing crude oil prices boosted investor sentiment.
However, selling pressure from FIIs may put pressure on the rupee at higher levels.
At the interbank forex market, the local unit opened at 82.08 against the American currency and finally settled at 81.91 (provisional) against the greenback, registering a gain of 15 paise over its previous close.
The rupee touched a high of 81.88 and a low of 82.09 against the dollar during the day.
On Friday, the rupee had closed at 82.06 against the US dollar.
The rupee strengthened on Monday due to strength in the domestic equity markets and weakness in the US dollar. A weakening trend in crude oil prices also supported the rupee. However, Anuj Chowdhary, research analyst at Sharekhan by BNP Paribas, said FII outflows limited the sharp gains.
“We expect the rupee to trade with a positive tone on easing global crude prices and positive domestic equities. Chaudhary said the dollar could continue to weaken as overall economic data remained largely weak, adding to concerns over a recession.
Chaudhary said that according to him, selling pressure from FIIs may also put pressure on the rupee at higher levels.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.17 per cent to 101.64.
Global oil benchmark Brent crude futures fell 0.29 per cent to $81.42 a barrel.
On the domestic equity market front, the 30-share BSE Sensex advanced 401.04 points or 0.67 per cent to close at 60,056.10, and the broader NSE Nifty advanced 119.35 points or 0.68 per cent to 17,743.40.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 2,116.76 crore, according to exchange data.
Meanwhile, India’s foreign exchange reserves increased by $1.657 billion to $586.412 billion as of April 14, according to data released by the Reserve Bank of India on Friday.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
