The Indian rupee came under pressure in early trade on Monday as the US dollar strengthened, foreign fund outflows continued and elevated crude oil prices added to concerns amid the ongoing West Asia conflict.
At the interbank foreign exchange market, the rupee opened at 95.89 against the US dollar and weakened further to touch 95.95, down 20 paise from its previous close.
On Friday, the rupee had gained 24 paise to close at 95.75 against the US dollar.
The dollar index, which measures the greenback’s strength against a basket of 6 currencies, was trading at 101.11, up 0.15%. Brent crude futures, the global oil benchmark, rose 2.31% to $106.81 per barrel.
“Despite the Brent oil for November series being higher due to US President Donald Trump rejecting the peace proposal from Iran, the rupee is set to open at around 95.80 and is expected to remain in the range of 95.50 to 96.00 with the RBI continuing to hold the 96.00 of the range,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Bhansali said Brent crude remained firmly above the $100 mark, posing continued pressure on India’s import bill and foreign exchange reserves.
Domestic equities also came under pressure. The Sensex fell 730 points to 73,170.12 in early trade, while the Nifty declined 231.50 points to 22,908.95.
Foreign Institutional Investors sold equities worth ₹3,693.93 crore on a net basis on Friday, according to exchange data.
India’s forex reserves also declined by $14.881 billion to $765.901 billion during the week ended September 18, according to RBI data released on Friday. The fall was attributed to a decline in foreign currency assets.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.