The local unit at the interbank foreign exchange started out well against the dollar at 81.76 before rising to 81.70, representing an increase of 8 paise over its prior closing.
Mumbai: The rupee increased 8 paise to ₹81.70 against the US dollar before business on Monday, following the drop in the value of the US dollar in international trade.
Significant inflows of foreign funds, according to forex traders, as well as crude oil prices below 75 USD per barrel, strengthened the local currency.
The local unit at the interbank foreign exchange started well against the dollar at 81.76 before rising to 81.70, representing an increase of 8 paise over its prior closing.
The rupee’s closing value versus the US dollar on Thursday was 81.78.
Because it was Buddha Purnima on Friday, the currency market was closed.
The dollar index, which measures the strength of the dollar against a basket of 6 different currencies, decreased 0.07 percent to 101.14.
The benchmark for world oil, Brent crude futures, increased 0.07 percent to USD 75.35 a barrel.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, stated that the rupee is expected to stay range-bound as a result of RBI’s intervention on both sides.
“Forex reserves increased to USD 589 billion, amply demonstrating RBI’s market purchases of dollars and gold. Market participants are awaiting data on US consumer inflation expectations and Eurozone industrial production, according to Bhansali.
For the week ending April 28, India’s foreign exchange reserves increased by 4.532 USD billion to 588.78 USD billion, the Reserve Bank of India reported on Friday.
The reserves overall had decreased by 2.164 USD billion to 584.248 USD billion the week before.
According to exchange data, (FIIs) Foreign Institutional Investors were net purchasers on Friday in the capital market, buying shares worth 777.68 crore.
The 30-share BSE Sensex increased 447.03 points or 0.73 percent to 61,501.32 on the local equities market. The NSE Nifty, a more inclusive index, increased 120.65 points, or 0.67 percent, to 18,189.65.