Mumbai rupee recorded range trading against the US dollar in early trade on Monday amid a negative trend in the domestic stock market.
Forex traders said the strength of the US currency in the overseas market and elevated crude oil prices also weighed on the local unit and restricted the bullish movement.
At the interbank forex market, the local unit opened at 83.52 and gained further to trade at 83.45 against the dollar in early trade, registering a rise of 12 paise from its previous closing level.
On Friday, the rupee hit the lowest level of 83.63 but eventually settled at 83.57 against the dollar, registering a gain of 4 paise over its previous close.
"Friday's price action appeared to indicate deliberate intervention by the central bank," IFA Global said in a research note, adding that the rupee is likely to trade in the range of 83.40-83.67 with a sideways price action.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.03 percent to 105.82.
Brent crude futures, the global oil benchmark, fell 0.06 percent to $85.19 a barrel.
"The Indian rupee rose slightly on Friday and is expected to remain range-bound with the Reserve Bank of India (RBI) sitting near 83.60 to protect it after the USD/INR pair hit a record low of 83.67 last week due to continued equity-related capital outflows and stronger dollar index,” said Anil Kumar Bhansali, Head of Treasury and Managing Director, Finrex Treasury Advisors LLP.
At the domestic stock market, the 30-share BSE Sensex fell 349.25 points, or 0.45 per cent, to 76,860.65. The broader NSE Nifty fell 103.15 points, or 0.44 per cent, to 23,397.95.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 1,790.19 crore, according to exchange data.
Meanwhile, India's foreign exchange reserves fell by $2.922 billion to $652.895 billion during the week ended June 14, the Reserve Bank said on Friday.
In the previous week, the kitten had risen $4,307 million to $655,817 million, a new all-time high after consecutive weeks of rising reserves.
Forex traders said the strength of the US currency in the overseas market and elevated crude oil prices also weighed on the local unit and restricted the bullish movement.
At the interbank forex market, the local unit opened at 83.52 and gained further to trade at 83.45 against the dollar in early trade, registering a rise of 12 paise from its previous closing level.
On Friday, the rupee hit the lowest level of 83.63 but eventually settled at 83.57 against the dollar, registering a gain of 4 paise over its previous close.
"Friday's price action appeared to indicate deliberate intervention by the central bank," IFA Global said in a research note, adding that the rupee is likely to trade in the range of 83.40-83.67 with a sideways price action.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.03 percent to 105.82.
Brent crude futures, the global oil benchmark, fell 0.06 percent to $85.19 a barrel.
"The Indian rupee rose slightly on Friday and is expected to remain range-bound with the Reserve Bank of India (RBI) sitting near 83.60 to protect it after the USD/INR pair hit a record low of 83.67 last week due to continued equity-related capital outflows and stronger dollar index,” said Anil Kumar Bhansali, Head of Treasury and Managing Director, Finrex Treasury Advisors LLP.
At the domestic stock market, the 30-share BSE Sensex fell 349.25 points, or 0.45 per cent, to 76,860.65. The broader NSE Nifty fell 103.15 points, or 0.44 per cent, to 23,397.95.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 1,790.19 crore, according to exchange data.
Meanwhile, India's foreign exchange reserves fell by $2.922 billion to $652.895 billion during the week ended June 14, the Reserve Bank said on Friday.
In the previous week, the kitten had risen $4,307 million to $655,817 million, a new all-time high after consecutive weeks of rising reserves.
