Rupee gains 24 paise to Rs. 81.78 against US dollar

Indian Rupee
Image Source: Ground Report

In early trading on Monday, the rupee rose 24 paise to 81.78 versus the US dollar, continuing a strong trend in local stocks and foreign capital inflows.

The local unit started at 81.90 versus the dollar on the interbank foreign exchange market, then rose to 81.78, a 24 paise increase from its previous finish.

The rupee finished at 82.02 versus the US dollar on Thursday.

Due to Good Friday, the equity and FX markets were closed on April 7.

Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.11 percent to 102.20.

Brent crude futures fell 0.22 percent to $84.99 a barrel, the global oil benchmark.

Domestically, the rupee was largely impacted by the Central Bank of India’s Monetary Policy Committee meeting.

“The pause in the rate hike could further squeeze down the interest rate differential between the US and India and could put pressure on the rupee. Moreover, the market will continue to check the development of rising COVID cases in India,” CR Forex Advisors MD-Amit Pabari said, adding that on April 9, India reported 5,357 new COVID cases, with an active caseload of 32,000.

Also, it has been seen that the RBI seldom holds the dollar-rupee below 81.80-81.50 levels, so this zone should serve as a significant support for the pair, according to Pabari.

The 30-share BSE Sensex rose 55.91 points, or 0.09 percent, to 59,888.88 in the domestic equity market. The NSE Nifty rose 22.25 points, or 0.13 percent, to 17,621.40.

According to exchange statistics, Foreign Institutional Investors (FIIs) were net purchasers in the capital market on Thursday, purchasing shares worth Rs. 475.81 crore.


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