rupee drops 4 paise to 83.41
In early trade on Tuesday, the rupee fell 4 paise to trade at 83.41 against the US dollar, amid increased importer demand for the US dollar. The local currency saw an opening value of 83.38 per dollar, up from the closing value of 83.37.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.09% at 103.62.
The Reserve Bank of India’s monetary policy decision is expected to provide investors with clues, according to forex dealers. The central bank’s Monetary Policy Committee will start its bi-monthly review meeting on Wednesday and make the announcement on Friday.
The rupee concluded the week at 83.38 vs the US dollar, despite the fact that the nation’s key equities indices closed at all-time highs.
Prior to the release of significant economic data from the US, volatility is predicted to stay high. Focus will be on the RBI policy statement on the home front. Any dovish remarks from the central bank might lead to a decline in the value of the rupee, according to Gaurang Somaiya, a forex and bullion analyst at Motilal Oswal Financial Services. It is anticipated that the central bank would maintain rates on quo.
The services PMI figure will be the main focus today, and better-than-expected data might prolong the greenback’s advances. We anticipate sideways trading and a quote in the 83.20–83.50 region for the USD-INR (Spot),” Somaiya continued.
In the meantime, the world oil benchmark, Brent crude futures, fell 0.03% to $78.01 per barrel.
Regarding the domestic equities market, the Nifty 50 gained 131.95 points, or 0.64%, to 20,818.75, while the Sensex increased 416.59 points, or 0.60%, to 69,281.71.
Exchange data indicates that on Monday, foreign institutional investors bought shares worth ₹2,073.21 crore, making them net purchasers in the capital market.
