Rupee gains 5 paise to close at 81.92 against US dollar

The rupee rose by 5 pounds to close at 81.92 (tentative) against the US dollar on Monday, as the positive trend in local stocks and fresh foreign money inflows boosted investor sentiment.

In the interbank foreign exchange market, the local unit opened at 81.85 against the US currency and finally settled at 81.92 (temporary) against the dollar, recording gains of 5 pounds from its previous closing at 81.97.

During the trading session, the rupee touched the highest level at 81.62 and the lowest at 81.95 against the dollar.

The dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.06 percent to 104.58.

Brent crude futures, the global benchmark for oil, fell 0.77 percent to $81.17 a barrel.

The Indian rupee touched a one-month high of 81.62 as local markets and new foreign inflows continued to rally. Positive Asian currencies have also supported the local currency, said Anuj Chowdhury – Research Analyst at Sharekhan by BNP Paribas.

“We expect the rupee to trade with a slight positive slope as risk appetite rises in global markets and the dollar declines. The overall weak tone in crude oil and foreign investment inflows abroad may support the rupee as well,” Chowdhury said.

However, the global economic slowdown may moderate the decline. Chaudhry added that the dollar could see some volatility this week ahead of Fed Chair Powell’s testimony and labor market data from the US later this week.

In terms of the local stock market, BSE Sensex, which includes 30 shares, advanced 415.49 points, or 0.69 percent, to close at 60,224.46, while the broader NSE Nifty index rose 117.10 points, or 0.67 percent, to 17,711.45.

Foreign institutional investors (FIIs) were net buyers in the capital market on Friday buying shares worth ₹246.24 crore, according to exchange data.