Forex dealers reported that despite widespread dollar weakness against its major crosses due to possible importer-related buying, the rupee hit new record lows on Monday.
In early trade on Tuesday, the rupee bounced back from its record lows and gained 6 paise to 83.32 against the US dollar, tracking the US dollar’s depreciation in foreign exchange markets and gains in domestic equities.
Forex dealers reported that despite widespread dollar weakness against its major crosses due to possible importer-related buying, the rupee hit new record lows on Monday.
The rupee opened at 83.33 against the US dollar at the interbank foreign exchange, and it later touched 83.32, up 6 paise from its previous close.
The rupee fell 12 paise against the US dollar on Monday, reaching an all-time low of 83.38.
Investor attention will be focused on the US home sales data that is currently available, and lower-than-expected figures may keep the dollar weaker. The USDINR (Spot) is expected to move sideways and quote between 83.05 and 83.40, according to Gaurang Somaiya, a Motilal Oswal Financial forex and bullion analyst.
In the meantime, the dollar index was down 0.21% to 103.21.
The US 10-year bond is currently trading at 4.4060 percent, and the dollar index is down to 103.30. “The FOMC meeting minutes are anticipated by the market to provide insight into the Fed’s interest rate policy,” stated Anil Kumar Bhansali, Executive Director at Finrex Treasury Advisors LLP and Head of Treasury.
At USD 81.88 per barrel, Brent crude futures, the benchmark for global oil, were down 0.53%.
In terms of domestic equity, the BSE Sensex increased by 255.12 points, or 0.39 percent, to 65,910.27 points. Reaching 19,774.15 points, the NSE Nifty saw an increase of 80.15 points, or 0.41 percent.
Exchange data indicates that on Monday, Foreign Institutional Investors (FIIs) sold shares worth Rs 645.72 crore, making them net sellers in the capital market.
