The rupee remains stable within a well-defined range. (Photo: Reuters)
The rupee appreciated 5 paise to 83.87 against the US dollar in early trade on Monday, supported by weakening of the American currency in the overseas market and significant foreign fund inflows.
Currency traders said market participants are eagerly awaiting monetary policy signals from the U.S. Federal Reserve on Wednesday, with a rate cut almost certain. However, the magnitude of the cut remains uncertain.
Moreover, the rupee continues to remain stable within a well-defined range thanks to active intervention by the Reserve Bank of India (RBI), they added.
At the interbank foreign exchange market, the local unit opened at 83.89, before advancing slightly to touch 83.87, registering an increase of 5 paise from its previous close.
On Friday, the local unit rose 4 paise to close at 83.92 against the US dollar.
“Despite a significant drop in the dollar index and crude oil prices remaining in check over the past few sessions, coupled with inflation figures remaining below the central bank’s 4 per cent target for the second consecutive month, the rupee has remained stable,” CR Forex Advisors Managing Director Amit Pabari said.
Pabari further added that this stability is largely due to the RBI’s persistent intervention on the buy-side, reflected in the build-up of reserves, which have now touched an all-time high of around USD 690 billion.
India’s foreign exchange reserves rose by USD 5,248 billion to a new record high of USD 689,235 billion during the week ended September 6, the Reserve Bank of India said on Friday.
Total funds had increased by USD 2.299 billion to a record USD 683.987 billion during the previous reporting week.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.26 percent to 100.85 points.
Brent crude, the international benchmark, gained 0.15 percent to $71.72 a barrel in futures trading.
On the domestic front, the 30-share BSE Sensex advanced 128.95 points, or 0.16 per cent, to 83,019.89, while the Nifty rose 46.00 points, or 0.18 per cent, to 25,402.50.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 2,364.82 crore, according to exchange data.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 16, 2024 | 10:00 am IS
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