At the interbank foreign exchange market, the local unit opened at 83.10 against the US dollar and moved in a range of 83.05 to 83.16 in the day trade.
Published Date – 08:54 PM, Mon – 21 August 23
New Delhi: The rupee depreciated by 3 paise and settled for the day at an all-time low of 83.13 against the US dollar on Monday, weighed down by a surge in crude oil prices and selling pressure by foreign investors.
Forex traders said rupee is likely to trade with a negative bias on risk aversion in global markets. At the interbank foreign exchange market, the local unit opened at 83.10 against the US dollar and moved in a range of 83.05 to 83.16 in the day trade.
The rupee finally settled at 83.13 against the US dollar, down 3 paise from its previous close. On Friday, the rupee edged lower by 1 paisa to settle at an all-time low of 83.10 against the US dollar, weighed down by a negative trend in domestic equities, and foreign fund outflows.
The Indian rupee depreciated on a surge in crude oil prices and selling pressure by foreign investors.
However, the weak tone in US dollar and positive domestic markets cushioned the downside, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. The US dollar declined after the Chinese central bank reduced a key rate by 10 basis points to 3.45 per cent to stimulate the economy leading to risk on sentiments.
“We expect the rupee to trade with a negative bias on rising global crude oil prices and overall strength in the US dollar amid the hawkish US Federal Reserve. However, positive domestic markets and any intervention by the Reserve Bank of India may support rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.50,” Choudhary added.
Most investors will be taking cues from the BRICS summit and the Jackson Hole Symposium, traders said.
“This week, preliminary manufacturing and services PMI number from the major economies will be released. But importantly, it will be the BRICS summit and the Jackson Hole Symposium that most investors will be taking cues from,” Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14 per cent to 103.23.
Brent crude futures, the global oil benchmark, advanced 0.64 per cent to USD 85.34 per barrel. On the domestic equity market front, the 30-share BSE Sensex closed 267.43 points or 0.41 per cent higher at 65,216.09. The broader NSE Nifty advanced 83.45 points or 0.43 per cent to 19,393.60.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 1,901.10 crore, according to exchange data.
India’s foreign exchange reserves jumped USD 708 million to USD 602.161 billion for the week ended August 11, the Reserve Bank of India (RBI) said on Friday.
This is the first increase in the kitty after declining for three consecutive weeks. In the previous week, the overall reserves had declined USD 2.417 billion to USD 601.453 billion.
