Mumbai: The rupee on Monday pared its early gains and closed 7 paise lower at 83.52 against the US dollar due to higher crude oil prices.
Forex traders said a weak trend in domestic equities also weighed on investment sentiments.
At the interbank foreign exchange, the local unit opened at 83.43, then touched an intra-day high of 83.42 and a low of 83.55 against the greenback. The rupee finally closed at 83.52 against the dollar, showing a decline of 7 paise over its previous close.
On Friday, the rupee closed 1 paise higher at 83.45 against the US dollar.Forex traders said US dollar demand from importers and improvement in crude oil prices weighed on the rupee.
“We expect the rupee to trade with a slightly positive bias due to rising risk appetite in global markets. However, any correction in crude oil prices could be sharply offset by the impact of any new geopolitical tensions in the Middle East. level,” said Anuj Chaudhary, research analyst at BNP Paribas.Chaudhary said the USD-INR spot price is expected to range between Rs 83.20 and Rs 83.70.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.06 percent higher at 105.09.
According to Jatin Trivedi, VP Research Analyst – Commodity & Currency, LK Securities, last week non-farm payrolls and unemployment data from the US which came in lower and higher respectively, weakened the dollar index.
"The rupee is expected to remain under some pressure as the general elections continue. The rupee is expected to remain in the range of 83.35-83.65," Trivedi said.,
Global oil benchmark Brent crude futures rose 0.80 percent to US$83.62 per barrel.
On the domestic equity market front, Sensex closed 17.39 points or 0.02 per cent higher at 73,895.54. Nifty fell 33.15 points or 0.15 percent and closed at 22,442.70.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 2,168.75 crore, according to T exchange data.
Meanwhile, India's foreign exchange reserves fell by US$2.412 billion to US$637.92 billion on April 26, the Reserve Bank of India (RBI) said on Friday, the third consecutive weekly decline in reserves.In the previous reporting week, total reserves had declined by US$2.2 billion to US$640.33 billion.
On the macroeconomic front, the seasonally adjusted HSBC India Services Business Activity Index fell to 60.8 in April from 61.2 in March, highlighting one of the strongest growth rates seen in less than 14 years.
Forex traders said a weak trend in domestic equities also weighed on investment sentiments.
At the interbank foreign exchange, the local unit opened at 83.43, then touched an intra-day high of 83.42 and a low of 83.55 against the greenback. The rupee finally closed at 83.52 against the dollar, showing a decline of 7 paise over its previous close.
On Friday, the rupee closed 1 paise higher at 83.45 against the US dollar.Forex traders said US dollar demand from importers and improvement in crude oil prices weighed on the rupee.
“We expect the rupee to trade with a slightly positive bias due to rising risk appetite in global markets. However, any correction in crude oil prices could be sharply offset by the impact of any new geopolitical tensions in the Middle East. level,” said Anuj Chaudhary, research analyst at BNP Paribas.Chaudhary said the USD-INR spot price is expected to range between Rs 83.20 and Rs 83.70.
Meanwhile, the dollar index, which gauges the greenback's strength against six currencies, was trading 0.06 percent higher at 105.09.
According to Jatin Trivedi, VP Research Analyst – Commodity & Currency, LK Securities, last week non-farm payrolls and unemployment data from the US which came in lower and higher respectively, weakened the dollar index.
"The rupee is expected to remain under some pressure as the general elections continue. The rupee is expected to remain in the range of 83.35-83.65," Trivedi said.,
Global oil benchmark Brent crude futures rose 0.80 percent to US$83.62 per barrel.
On the domestic equity market front, Sensex closed 17.39 points or 0.02 per cent higher at 73,895.54. Nifty fell 33.15 points or 0.15 percent and closed at 22,442.70.
Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they sold shares worth Rs 2,168.75 crore, according to T exchange data.
Meanwhile, India's foreign exchange reserves fell by US$2.412 billion to US$637.92 billion on April 26, the Reserve Bank of India (RBI) said on Friday, the third consecutive weekly decline in reserves.In the previous reporting week, total reserves had declined by US$2.2 billion to US$640.33 billion.
On the macroeconomic front, the seasonally adjusted HSBC India Services Business Activity Index fell to 60.8 in April from 61.2 in March, highlighting one of the strongest growth rates seen in less than 14 years.
