MUMBAI: The rupee pared its early gains and closed at 83.13 against the US dollar on Monday, mirroring the benchmark index which erased its gains and ended the day well above its record-high. Did.
Forex traders said the rupee closed in a narrow range as the US currency's weakness in the overseas market supported the rupee, while rising crude oil prices in the international market limited the gains.
At the interbank foreign exchange, the local unit opened at 83.08, then touched an intra-day high of 83.05, but soon pared the gains and closed 3 paise lower at 83.13 against the American currency.
On Friday, the rupee appreciated for the fourth consecutive trading session and closed at 83.10 against the US dollar with a sharp rise of 19 paise.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.05 per cent lower at 104.67.Global oil benchmark Brent crude futures rose 0.47 percent to US$82.51 per barrel.
“We expect the rupee to trade with a positive bias on expectations of positive domestic equities and fresh forex inflows. However, a stronger US dollar and improving crude oil prices may cap the upside,” Anuj Choudhary – Sharekhan Buy Said research analyst at BNP Paribas.
US markets will remain closed on Monday for the Memorial Day holiday. Investors will remain cautious ahead of core PCE (personal consumption expenditure) price index data later this week.The USD-INR spot price is expected to be between Rs 82.80 and Rs 83.30, Chaudhary said.
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said: “The rupee continued to rise due to inflows from MSCI indices but closed lower due to losses in equities.
"On Tuesday it is expected to be in the range of 82.95 to 83.25 as oil is probably sitting on the upside and exporters are selling on the downside."
On the domestic macroeconomic front, India's foreign exchange reserves rose by US$ 4.54 billion to a new all-time high of US$ 648.7 billion during the week ended May 17, the Reserve Bank of India said on Friday.
This is the third consecutive week of increase in the overall kitty, which increased by US$2.561 billion to US$644.151 billion in the last reported week ending May 17.In the domestic equity market, the 30-share BSE Sensex closed at 75,390.50, down 19.89 points or 0.03 per cent. The broader NSE Nifty fell 24.6 points or 0.11 per cent to 22,932.45.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 541.22 crore, according to exchange data.
Forex traders said the rupee closed in a narrow range as the US currency's weakness in the overseas market supported the rupee, while rising crude oil prices in the international market limited the gains.
At the interbank foreign exchange, the local unit opened at 83.08, then touched an intra-day high of 83.05, but soon pared the gains and closed 3 paise lower at 83.13 against the American currency.
On Friday, the rupee appreciated for the fourth consecutive trading session and closed at 83.10 against the US dollar with a sharp rise of 19 paise.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.05 per cent lower at 104.67.Global oil benchmark Brent crude futures rose 0.47 percent to US$82.51 per barrel.
“We expect the rupee to trade with a positive bias on expectations of positive domestic equities and fresh forex inflows. However, a stronger US dollar and improving crude oil prices may cap the upside,” Anuj Choudhary – Sharekhan Buy Said research analyst at BNP Paribas.
US markets will remain closed on Monday for the Memorial Day holiday. Investors will remain cautious ahead of core PCE (personal consumption expenditure) price index data later this week.The USD-INR spot price is expected to be between Rs 82.80 and Rs 83.30, Chaudhary said.
Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said: “The rupee continued to rise due to inflows from MSCI indices but closed lower due to losses in equities.
"On Tuesday it is expected to be in the range of 82.95 to 83.25 as oil is probably sitting on the upside and exporters are selling on the downside."
On the domestic macroeconomic front, India's foreign exchange reserves rose by US$ 4.54 billion to a new all-time high of US$ 648.7 billion during the week ended May 17, the Reserve Bank of India said on Friday.
This is the third consecutive week of increase in the overall kitty, which increased by US$2.561 billion to US$644.151 billion in the last reported week ending May 17.In the domestic equity market, the 30-share BSE Sensex closed at 75,390.50, down 19.89 points or 0.03 per cent. The broader NSE Nifty fell 24.6 points or 0.11 per cent to 22,932.45.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 541.22 crore, according to exchange data.
