Forex traders said the rupee rose after the American currency dropped from its elevated levels, following a slower-than-expected US job growth in October.
Published Date – 11:15 AM, Mon – 6 November 23
Mumbai: The rupee appreciated 5 paise to 83.15 against the US dollar in early trade on Monday, tracking positive domestic equities as risk-on sentiments prevailed in the market.
Forex traders said the rupee rose after the American currency dropped from its elevated levels, following a slower-than-expected US job growth in October.
At the interbank foreign exchange, the domestic unit opened at 83.17 against the dollar and then touched an early high of 83.15, registering a gain of 5 paise over its previous close.
On Friday, the rupee settled at 83.20 against the US dollar.
“Volatility for rupee remained low but appreciated marginally on the NDF (Non Deliverable Forward) after US non-farm payrolls data showed the US economy added 150k jobs in October as compared to estimates of 180k job addition,” Gaurang Somaiya, forex and bullion analyst Motilal Oswal Financial Services, said.
Dollar weakened against its major crosses after the release of jobs report.
“Focus will be on the services PMI (Purchasing Managers’ Index) number from the eurozone and better-than-expected data could extend gains for the currency. We expect the USD-INR (spot) to trade in the range of 83.05 and 83.40,” Somaiya said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent higher at 105.05.
Brent crude futures, the global oil benchmark, rose 0.40 per cent to USD 85.23 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 355.05 points or 0.55 per cent higher at 64,718.83 points. The broader NSE Nifty advanced 107.75 points or 0.56 per cent to 19,338.35 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth Rs 12.43 crore, according to exchange data.
Meanwhile, India’s foreign exchange reserves increased USD 2.579 billion to USD 586.111 billion in the week ended on October 27, the Reserve Bank of India said on Friday.
