Mumbai rupee appreciated by 5 paise to 83.44 against the US dollar in early trade on Monday, as the US currency and crude oil prices retreated from their high levels.
Forex traders said foreign fund inflows also helped investor sentiment and supported the rupee.
In the interbank forex market, the local unit opened at 83.45 and again gained to 83.44 against the dollar, registering an increase of 5 paise over the previous close.
On Friday, the rupee settled at 83.49 against the US dollar.
According to CR Forex Advisors CEO Amit Pabari, the Reserve Bank of India (RBI) seems determined to prevent the rupee from depreciating below 83.70. Even with pressure from oil companies due to high oil prices.
"Overall, positive economic indicators such as good growth rate, stable inflation, low fiscal deficit, record RBI foreign exchange reserves and influx of capital inflows are all supporting factors that should ideally boost the rupee," Pabari said, adding that Considering these factors, the rupee is expected to trade within a wide range of levels of 83.20 to 83.70.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 104.86, down 0.01 percent.
Brent crude futures, the global oil benchmark, fell 0.03 percent to $86.51 a barrel.
At the domestic stock market, the 30-share BSE Sensex fell 174.57 points, or 0.22 per cent, to 79,822.03 points. The broader NSE Nifty fell 13.05 points, or 0.05 per cent, to 24,310.80 points.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth Rs 1,241.33 crore, according to exchange data.
On the domestic macroeconomic front, India's foreign exchange reserves fell by $1.713 billion to $651.997 billion during the week ended June 28, the Reserve Bank of India (RBI) said on Friday.
In the previous week, the total budget had fallen by 2,922 million dollars to 652,895 million dollars. Reserves reached a historical maximum of 655,817 million dollars on June 7 of this year.
Forex traders said foreign fund inflows also helped investor sentiment and supported the rupee.
In the interbank forex market, the local unit opened at 83.45 and again gained to 83.44 against the dollar, registering an increase of 5 paise over the previous close.
On Friday, the rupee settled at 83.49 against the US dollar.
According to CR Forex Advisors CEO Amit Pabari, the Reserve Bank of India (RBI) seems determined to prevent the rupee from depreciating below 83.70. Even with pressure from oil companies due to high oil prices.
"Overall, positive economic indicators such as good growth rate, stable inflation, low fiscal deficit, record RBI foreign exchange reserves and influx of capital inflows are all supporting factors that should ideally boost the rupee," Pabari said, adding that Considering these factors, the rupee is expected to trade within a wide range of levels of 83.20 to 83.70.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading at 104.86, down 0.01 percent.
Brent crude futures, the global oil benchmark, fell 0.03 percent to $86.51 a barrel.
At the domestic stock market, the 30-share BSE Sensex fell 174.57 points, or 0.22 per cent, to 79,822.03 points. The broader NSE Nifty fell 13.05 points, or 0.05 per cent, to 24,310.80 points.
Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth Rs 1,241.33 crore, according to exchange data.
On the domestic macroeconomic front, India's foreign exchange reserves fell by $1.713 billion to $651.997 billion during the week ended June 28, the Reserve Bank of India (RBI) said on Friday.
In the previous week, the total budget had fallen by 2,922 million dollars to 652,895 million dollars. Reserves reached a historical maximum of 655,817 million dollars on June 7 of this year.
