Following the upward trend in domestic markets, the rupee rebounded from its record low levels and increased by 5 paise to 83.05 against the US dollar in early trade on Monday.
Following a bullish trend in domestic markets, the rupee rebounded from its record lows and increased by 5 paise to 83.05 against the US dollar in early trade on Monday.
The rupee is likely to trade with a negative bias due to risk aversion on international markets and a strengthening US dollar, according to forex traders.
The domestic currency touched a high of 83.05 against the American currency at the interbank foreign exchange, rising 5 paise from its previous closing. The domestic currency opened at 83.10 there.
As a result of a downward trend in domestic stocks and foreign investment outflows, the rupee fell by 1 paisa on Friday to conclude the day at an all-time low of 83.10.
The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, increased 0.02 percent to 103.39.
According to Gaurang Somaiya, a forex and bullion analyst at Motilal Oswal Financial Services, the dollar experienced its longest winning run in the previous 15 months as a result of safe haven buying in response to unrest in China and better-than-expected economic data from the US.
Somaiya noted that the rupee is being affected by the Chinese Yuan’s depreciation as a result of growing anxiety regarding China’s economic recovery.
The Jackson Hole Symposium and the BRICS conference will serve as major influencers for most investors. Somaiya said that the USDINR(Spot) would fluctuate sideways and trade between 82.80 and 83.30.
The benchmark for world oil, Brent crude futures, increased 0.73 percent to USD 85.42 a barrel.
The 30-share BSE Sensex was up 117.43 points, or 0.18 percent, to 65,066.09 on the domestic equity market. The NSE Nifty index as a whole increased by 26.40 points, or 0.14 percent, to 19,336.55.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 266.98 crore on Friday, making them net sellers in the capital markets.
The Reserve Bank of India (RBI) reported on Friday that India’s foreign exchange reserves increased by USD 708 million to USD 602.161 billion for the week ending August 11.
After declining for three weeks in a row, the kitty has now increased for the first time. The overall reserves have decreased by USD 2.417 billion to USD 601.453 billion over the previous week.