Rupee falls 13 paise to 82.80 against US dollar

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The rupee fell 13 paisa to 82.80 against the US dollar in early trading on Monday, after The central bank said it would withdraw banknotes of higher value from circulationn.

In the foreign exchange market between banks, the local unit fell to 82.80 in initial trading, recording a decrease of 13 pounds from its last close.

On Friday, the rupee settled at 82.67 against the dollar.

Also read: BL Explanation. 2,000 banknotes have now been withdrawn. How is this different from de-trading in 2016?

Sriram Iyer, Senior Research Analyst, Commodities and Currency, Reliance Securities Limited, said traders will also assess the liquidity impact after the Reserve Bank of India withdrew the highest currency denomination from trading.

Moreover, doubts have emerged about debt ceiling negotiations, and a default could hurt the US economy and ultimately hurt sentiment back home.

the Reserve Bank of India On Friday, he made the surprise announcement but gave the public time until September 30 to deposit Rs 2,000 notes into accounts or exchange them at banks.

It said it had asked banks to stop issuing Rs 2,000 notes with immediate effect.

However, markets can find support as the dollar was marginally weaker on Monday on the back of Jerome Powell’s less hawkish comments on rates, Iyer added.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.14 percent to 103.04.

Brent crude futures, the global oil benchmark, rose 0.87 percent to $74.92 a barrel.

On the local stock market, the 30-share BSE Sensex index was trading down 254.67 points, or 0.41 percent, at 61,984.35. The broader NSE Nifty index fell 86.50 points, or 0.48 percent, to 18,289.90.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday unloading shares worth Rs 113.46 crore, according to exchange data.

Meanwhile, India’s foreign exchange rate rose for the second consecutive week, jumping $3.553 billion to $599.529 billion for the week ending May 12, the Reserve Bank of India said on Friday.

Total reserves jumped by $7.196 billion to $595.976 billion in the previous week.