Mumbai: The rupee strengthened in a narrow range against the US dollar on Monday and closed at the day's low of 1 paise at 83.52 (provisional), as support from positive domestic equities was negated by the stronger US currency.
Forex traders said the USD/INR pair is expected to remain range bound with a slight weakness bias due to buying of the US dollar by foreign investors and selling of the greenback by the Reserve Bank of India (RBI).
In the interbank foreign exchange market, the local unit traded in a limited range. It opened at 83.51 and touched a low of 83.53 during the day. The domestic unit finally closed for the day at 83.52 (provisional), down by a paise from its previous close.On Friday, the rupee closed at 83.51 against the American currency.
"We expect the rupee to trade marginally lower due to a stronger US dollar and weakness in domestic markets. Continued selling by FIIs may put further pressure on the rupee. However, any bond related dollar inflows may be at lower levels. Could find support,” said Anuj Chaudhary, research analyst at BNP Paribas.Traders can take cues from India's inflation data. Investors may remain cautious ahead of inflation data coming from the US this week. Chaudhary said that the spot price of USDINR is expected to remain in the range of Rs 83.30-83.80.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was down marginally by 0.02 per cent at 105.27.
Brent crude futures, the global oil benchmark, rose 0.12 percent to US$82.8 a barrel.In the domestic equity market, the 30-share BSE Sensex closed at 72,776.13, up 111.66 points or 0.15 per cent. The broader NSE Nifty closed 48.85 points or 0.22 per cent higher at 22,104.05.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 2,117.50 crore, according to T Exchange data.
Meanwhile, after three consecutive weeks of decline, India's foreign exchange reserves rose by US$3.668 billion to US$641.59 billion in the week ended May 3, the RBI said on Friday.
The total amount declined by US$2.412 billion to US$637.922 billion in the previous week ending April 26.On the macroeconomic front, India's industrial production growth slowed slightly month-on-month to 4.9 per cent in March 2024, mainly due to poor performance. According to official data released on Friday, the mining sector.
Factory output growth, measured in terms of the Index of Industrial Production (IIP), stood at 5.6 per cent in February 2024.
Forex traders said the USD/INR pair is expected to remain range bound with a slight weakness bias due to buying of the US dollar by foreign investors and selling of the greenback by the Reserve Bank of India (RBI).
In the interbank foreign exchange market, the local unit traded in a limited range. It opened at 83.51 and touched a low of 83.53 during the day. The domestic unit finally closed for the day at 83.52 (provisional), down by a paise from its previous close.On Friday, the rupee closed at 83.51 against the American currency.
"We expect the rupee to trade marginally lower due to a stronger US dollar and weakness in domestic markets. Continued selling by FIIs may put further pressure on the rupee. However, any bond related dollar inflows may be at lower levels. Could find support,” said Anuj Chaudhary, research analyst at BNP Paribas.Traders can take cues from India's inflation data. Investors may remain cautious ahead of inflation data coming from the US this week. Chaudhary said that the spot price of USDINR is expected to remain in the range of Rs 83.30-83.80.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was down marginally by 0.02 per cent at 105.27.
Brent crude futures, the global oil benchmark, rose 0.12 percent to US$82.8 a barrel.In the domestic equity market, the 30-share BSE Sensex closed at 72,776.13, up 111.66 points or 0.15 per cent. The broader NSE Nifty closed 48.85 points or 0.22 per cent higher at 22,104.05.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth Rs 2,117.50 crore, according to T Exchange data.
Meanwhile, after three consecutive weeks of decline, India's foreign exchange reserves rose by US$3.668 billion to US$641.59 billion in the week ended May 3, the RBI said on Friday.
The total amount declined by US$2.412 billion to US$637.922 billion in the previous week ending April 26.On the macroeconomic front, India's industrial production growth slowed slightly month-on-month to 4.9 per cent in March 2024, mainly due to poor performance. According to official data released on Friday, the mining sector.
Factory output growth, measured in terms of the Index of Industrial Production (IIP), stood at 5.6 per cent in February 2024.
