Rupee pares early gains, settles 19 paise lower against US dollar amid rising crude oil prices

Mumbai: The rupee surrendered all its early gains and closed 19 paise lower at 69.65 against the US dollar Monday amid strengthening of the greenback against Asian currencies and rising crude oil prices. At the interbank foreign exchange (forex), the domestic currency opened at 69.40 a dollar and gained further strength to touch a high of 69.38 during the day. The domestic currency, however, could not hold on to the gains and fell to 69.68. The rupee finally settled at 69.65 a dollar, down 19 paise over its previous close. The Indian unit had settled at 69.46 against the US dollar Friday. [caption id=“attachment_4619341” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “Indian rupee was unable to hold the morning gains amid higher crude oil prices and stronger dollar against Asian currencies,” said VK Sharma, Head-PCG & Capital Market Strategy, HDFC securities. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.34 percent to 96.87. However, gains in domestic equities and foreign fund inflows supported the rupee and capped its losses to some extent, they added. The BSE benchmark Sensex Monday rose 169 points, led by gains in IT stocks amid positive global cues. The NSE barometer Nifty gained 52 points to reclaim the 11,900 level. Brent crude futures, the global oil benchmark, rose 0.14 per cent to $63.38 per barrel. Meanwhile, the 10-year government bond yield was at 7.07 percent on Monday. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 216.20 crore Monday, provisional data showed. Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.3019 and for rupee/euro at 78.0691. The reference rate for rupee/British pound was fixed at 88.0217 and for rupee/100 Japanese yen at 63.92.