Rupee settles 3 paise down at 71.35 against US dollar amid easing crude oil prices
The rupee pared early losses to settle 3 paise down at 71.35 against the US dollar on Monday, tracking recovery in domestic equities and easing crude oil prices
At the interbank foreign exchange market, the local currency opened at 71.62
During the day, it saw a high of 71.32 and a low of 71.66
The domestic unit weakened amid concerns of fiscal slippage and rising coronavirus outbreak fears, forex traders said
Mumbai: The rupee pared early sharp losses to settle 6 paise down at 71.38 against the US dollar on Monday, tracking recovery in domestic equities and easing crude oil prices.
The rupee remained under pressure due to concerns over fiscal slippage and rising coronavirus outbreak fears, forex traders said.
The next trigger for the currency will be the Reserve Bank of India's monetary policy meeting, as its commentary on inflation as well as growth forecast would be keenly watched.
At the interbank foreign exchange market, the local currency opened at 71.62 and fell further to touch a low of 71.66. Mirroring the recovery in equities, the local unit cut losses to touch a high of 71.32. The unit finally settled at 71.38, down by 6 paise over the previous close.
The rupee had settled at 71.32 against the American currency on Friday.
The Sensex rose by 136.78 points or 0.34 percent to settle at 39,872.31 as 18 of its components ended with gains. The 50-share NSE Nifty gained 46.05 points or 0.39 percent to close at 11,707.90.
Foreign institutional investors sold equities worth Rs 1,200 crore on a net basis on Monday, according to provisional exchange data.
"...this week we have RBI policy, we expect the central bank to stand pat at 5.15 percent with accommodative stance, the commentary on inflation and growth forecast would be keenly watched.
"Meanwhile, the global concern that fast- spreading coronavirus may hamper global growth led to a gap-up open in USD/INR spot," said Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services.
The Reserve Bank of India is scheduled to hold its Monetary Policy Committee (MPC) during 4-6 February, 2020.
"Rupee may take further cues from global currencies along with coronavirus spread effects. Domestically budget has less spending on infrastructure which can keep rupee weak, a hint of silver lining for rupee remains crude prices which are trading at four-month lows," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
Meanwhile, the global crude benchmark Brent futures fell 0.02 percent to trade at $56.61 per barrel.
"The FII outflows from the stocks kept rupee under pressure. However, rupee witnessed marginal recovery in day trade with likely inflows into local debt and recovery in equity indices," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
Crude prices had seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China and other regions.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.32 percent to 97.70.
The 10-year Indian government bond yield was at 6.51 percent.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.5096 and for rupee/euro at 78.8169. The reference rate for rupee/British pound was fixed at 93.6614 and for rupee/100 Japanese yen at 65.58.
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The Indian rupee opened on a cautious note and fell 15 paise to 70.84 against the US dollar in early trade on Wednesday tracking subdued opening in domestic equities
Rupee falls by 7 paise to end at 71.33 on dollar demand from importers amid correction in crude oil prices
The rupee depreciated by 7 paise to close at 71.33 against the US dollar on Friday due to dollar demand from importers amid a correction in crude oil prices following the outbreak of coronavirus in China
The rupee rose by 12 paise to close at a more than one-month high of 70.92 against the US dollar on Tuesday amid softening crude oil prices and weakening of the greenback vis-a-vis major global currencies