Image Source : PIXABAY Rupee
The rupee strengthened by 18 paise against the US dollar in early trade on Monday, reaching 82.77, supported by robust performance in domestic equities that reached record highs.
In the interbank foreign exchange market, the rupee opened at 82.82 and touched 82.77 against the US dollar in initial trade, marking a gain of 18 paise from its previous close.
On Friday, the rupee had strengthened for the eighth consecutive session, closing with a 6 paise gain at 82.95 against the US dollar.
Continued inflows are anticipated, keeping the USDINR pair on the downside, with a significant support level at 82.80.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, advised keeping a close eye on the actions of the Reserve Bank of India during the day.
Dollar index and oil benchmark
The dollar index, measuring the strength of the greenback against a basket of six currencies, stood at 102.35. Meanwhile, the global oil benchmark Brent crude was priced at USD 78.54 per barrel.
With Monday being a holiday in the US for Martin Luther King, Jr. Day, reduced trading activity is expected, potentially lowering market volatility and indicating positive trends for emerging market currencies.
In the domestic equity market, the 30-share BSE Sensex rose by 707.03 points, or 0.97 per cent, to reach 73,275.48 points. The broader NSE Nifty also advanced by 178.40 points, or 0.81 per cent, reaching 22,072.95 points.
Foreign Institutional Investors (FIIs) were net sellers in the equity market on the previous Friday, offloading shares worth Rs 340.05 crore, as per exchange data.
On the domestic economic front, retail inflation increased to a four-month high of 5.69 per cent in December, while industrial production fell to an eight-month low of 2.4 per cent in November, according to government data released on Friday.
(With PTI inputs)
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