Mumbai: The rupee fell 10 paise to 83.50 against the US dollar in early trade on Monday, mainly due to rise in dollar index and US yields.
Forex traders said uncertainty among market players has eased as Narendra Modi was sworn in as prime minister for a record-tying third term on Sunday. However, the strengthening of the US currency in the international market had an impact on the local unit.
At the interbank foreign exchange market, the local unit opened at 83.48 and further traded at 83.50 against the greenback, showing a loss of 10 paise from its previous close.
On Friday, the rupee rose by 13 paise to 83.40 against the US dollar.According to Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, the rupee opened at 83.50 due to rise in dollar index and US yields.
"The Reserve Bank of India (RBI) should be there to protect the rupee as the current policies of the government will largely continue with the same Modi-2.0 cabinet," Bhansali said.
Modi will lead a 72-member Union Council of Ministers, which will emphasize continuity, youth and experience, while also rewarding partners in the BJP-led National Democratic Alliance (NDA) government.
Along with Modi, senior BJP leaders including Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman and S Jaishankar, all ministers of the Modi 2.0 cabinet, took oath as cabinet ministers at Rashtrapati Bhavan.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.29 percent higher at 105.18.Global oil benchmark Brent crude futures rose 0.31 percent to US$79.87 per barrel.
In the domestic equity market, both the benchmark indices, Sensex and Nifty, hit record highs in early trade. The 30-share BSE Sensex was trading 292.08 points or 0.38 per cent higher at 76,985.44. The broader NSE Nifty was trading at 23,291.50 points.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday as they bought shares worth Rs 4,391.02 crore, according to exchange data.Meanwhile, India's foreign exchange reserves rose by US$4.837 billion to a new all-time high of US$651.51 billion during the week ended May 31, the RBI said on Friday.
In the previous reporting week, total reserves had fallen by US$2.027 billion to US$646.673 billion.
Forex traders said uncertainty among market players has eased as Narendra Modi was sworn in as prime minister for a record-tying third term on Sunday. However, the strengthening of the US currency in the international market had an impact on the local unit.
At the interbank foreign exchange market, the local unit opened at 83.48 and further traded at 83.50 against the greenback, showing a loss of 10 paise from its previous close.
On Friday, the rupee rose by 13 paise to 83.40 against the US dollar.According to Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, the rupee opened at 83.50 due to rise in dollar index and US yields.
"The Reserve Bank of India (RBI) should be there to protect the rupee as the current policies of the government will largely continue with the same Modi-2.0 cabinet," Bhansali said.
Modi will lead a 72-member Union Council of Ministers, which will emphasize continuity, youth and experience, while also rewarding partners in the BJP-led National Democratic Alliance (NDA) government.
Along with Modi, senior BJP leaders including Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman and S Jaishankar, all ministers of the Modi 2.0 cabinet, took oath as cabinet ministers at Rashtrapati Bhavan.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.29 percent higher at 105.18.Global oil benchmark Brent crude futures rose 0.31 percent to US$79.87 per barrel.
In the domestic equity market, both the benchmark indices, Sensex and Nifty, hit record highs in early trade. The 30-share BSE Sensex was trading 292.08 points or 0.38 per cent higher at 76,985.44. The broader NSE Nifty was trading at 23,291.50 points.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday as they bought shares worth Rs 4,391.02 crore, according to exchange data.Meanwhile, India's foreign exchange reserves rose by US$4.837 billion to a new all-time high of US$651.51 billion during the week ended May 31, the RBI said on Friday.
In the previous reporting week, total reserves had fallen by US$2.027 billion to US$646.673 billion.
