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Rupee appreciates 8 paisa to 83.23 against US dollar: An early trade scenario on Monday

Submitted by admin on April 10th, 2024

The early trade on Monday showed a positive move. The rupee jumped 8 paisa to 83.23 against the US dollar. The upward move was triggered by fresh foreign fund inflows and positive domestic equities.

Forex traders revealed that crude oil prices plummeted from their increased levels and it gave an energetic boost to investor sentiments. Meanwhile, the US dollar’s strength in the foreign market weighed heavily on the local units and limited the upward movement.

The local unit at the interbank foreign exchange market opened at 83.27 against the greenback before touching 83.23 later in initial trade, 8 paisa higher than the price it closed at the last time.

On Friday, the rupee rose 8 paisa to close at 83.31 against the US dollar as the RBI decided not to touch the benchmark interest rate which is currently pegged at 6.5 percent for the 7th consecutive time.

The rupee is projected to trade in a range as the Central Bank of India continues to focus on protecting it from slipping down further while it may come to 83.20, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Market participants are looking forward to important macroeconomic data from the domestic and global front for further signals.

In the domestic scenario, CPI, IIP and WPI will be released this week. On the global front, forex traders will keep a tab on US CPI data.

The dollar index gauges the strength of the greenback against a basket of six currencies. Meanwhile, it was trading at 104.34, 0.5 percent higher.

Brent crude futures, the global oil benchmark, went down 1.61 per cent to USD 89.70 per barrel.

The domestic equity share market looks promising. The 30-share BSE Sensex went up a new lifetime high of 74,658.95. The Nifty soared to its new fresh all-time peak of 22,623.90.

In the capital market, FIIs (Foreign Institutional Investors) were net buyers as they purchased shares worth Rs 1,659.27 crore, as per exchange data.

India’s foreign exchange reserves went up to USD 645.583 (a jump of USD 2.951 billion) for the week that ended on March 29, the RBI said on Friday.

This is the sixth jump in a row in overall reserves. The kitty jumped to USD 642.631 billion in the last week.