Rupee falls 2 paise to close at 81.80 against US dollar

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the rupee It pared initial gains to settle down 2 pesos at 81.80 (tentative) against the US dollar on Monday, tracking a rebound in crude oil prices.

Forex traders said the rupee consolidated in a narrow range as gains from a weaker US currency and positive domestic stocks were negated by a rebound in Crude oil prices.

In the interbank foreign exchange market, the local unit opened on a positive note at 81.76 but pared early gains to settle 2 bps lower at 81.80 against the US dollar despite the strong trend in local stocks.

During the day, the rupee touched a high of 81.70 and a low of 81.82 against the US currency.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.07 percent to 101.13.

Brent crude futures, the global oil benchmark, rose 1.93 percent to $76.75 a barrel.

The rupee depreciated today on the back of a sharp recovery in crude oil prices. However, Anuj Chowdhury – Research Analyst at Sharekhan by BNP Paribas, said that the weakness of the US dollar and positive domestic stocks mitigated the downside.

The US dollar fell amid renewed concerns about the banking sector.

“We expect the rupee to trade with a slight positive bias as risk appetite picks up in global markets and the US dollar weakens. Industrial investment firms have been net buyers for the past seven consecutive sessions.

“However, recovery in crude oil prices may halt the sharp upward trend. Investors may remain cautious ahead of inflation data from India and the US later this week. We expect USD/INR to trade between 81.20 to 82.20 in the near term,” he said. Chowdhury said.

On the domestic stock market, 30-share BSE Sensex It advanced 709.96 points, or 1.16 percent to close at 61,764.25. The broader NSE Nifty index rose 195.40 points, or 1.08 percent, to settle at 18,264.40 points.

Foreign Institutional Investors (FIIs) They were net buyers in the capital market on Friday buying shares worth Rs 777.68 crore, according to exchange data.

Meanwhile, the Reserve Bank of India said on Friday that India’s foreign exchange reserves jumped $4.532 billion to $588.78 billion for the week ending April 28. reserves were total It decreased by $2.164 billion to $584.248 billion in the previous week.