The rupee is trading in a range, according to forex dealers, as foreign investors’ selling pressure dampened emotions but falling crude oil prices eased the downside.
In early trading on Monday, the rupee strengthened by 12 paisas to 82.52 against the US dollar, following higher-performing Asian rivals and domestic shares.
The rupee is reportedly trading in a range as selling pressure from foreign investors damaged emotions, but the fall was mitigated by dropping crude oil prices, according to forex dealers.
The domestic unit touched a high of 82.52 versus the American currency at the interbank foreign exchange, rising 12 paise from its previous level. The domestic unit had opened at 82.58.
The rupee also reached a low of 82.59 against the dollar in early trade.
The rupee lost 8 paise on Friday, falling to 82.64 against the US dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP, stated, “After a not too hawkish Powell in Jackson Hole Symposium on Friday, risk assets were all up as Dow Jones rose by 247 points and Asian stocks were also up.”
Bhansali continued, “The rupee has gained slightly at the opening in a data-driven week that will see the release of PMIs of most nations, as well as the NFPR on Friday, and looks to be in a range as the US and India GDP data are also awaited this week.” Bhansali also added that this week is expected to be data-driven.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, was trading unchanged at 104.07.
The benchmark for world oil, Brent crude futures, decreased 0.11 percent to USD 84.39 a barrel.
The 30-share BSE Sensex was up 92.24 points, or 0.14 percent, at 64,978.75 on the domestic equity market. The NSE Nifty index as a whole increased by 41.70 points, or 0.222%, to 19,307.50.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 4,638.21 crore on Friday, making them net sellers in the capital markets.
The Reserve Bank of India (RBI) said on Friday that India’s foreign exchange reserves decreased by USD 7.273 billion to USD 594.888 billion in the week ending August 18.