Rupee rises 31 paise to 69.39 against dollar in early trade ahead of RBI MPC meet; easing crude prices aid domestic currency

Mumbai: The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and higher opening in domestic equities.

Forex dealers said the local currency gained strength ahead of the Reserve Bank of India's monetary policy meet. The Monetary Policy Committee (MPC), which decides on key interest rates, will hold a meeting on 3, 4 and 6 June.

The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close.

 Rupee rises 31 paise to 69.39 against dollar in early trade ahead of RBI MPC meet; easing crude prices aid domestic currency

Representational image. Reuters.

The rupee on Friday had settled at 69.70 to the US dollar.

Meanwhile, the 10-year government bond yield was at 6.95 percent on Monday, against previous close of 7.03 percent on Friday.

Forex traders said foreign fund inflows also supported the domestic currency.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis Friday, provisional exchange data showed.

Brent crude futures, the global oil benchmark, eased 1.13 percent to $61.29 per barrel.

Meanwhile, the benchmark BSE Sensex was trading higher by 187.60 points, or 0.47 percent to quote at 39,901.80 while the NSE Nifty was trading at 11,963.10, higher by 40.30 points, or 0.34 percent.

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Updated Date: Jun 03, 2019 11:01:05 IST