Currency news: Rupee falls 8 paise to 83.95 against US dollar in early trade
Asian currencies fell after appreciating on Monday. The Indian rupee opened at 83.91 and is expected to trade in a small range of 83.85/95, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Rupee depreciated 8 paise to 83.95 against the US dollar in morning trade on Tuesday, weighed down by elevated crude oil prices and a muted trend in domestic equities.
Forex traders said Brent Crude, the international benchmark, was trading above the USD 80 per barrel mark, as fighting continued in the Middle East and attacks by Russia over Ukraine also increased geopolitical tensions.
At the interbank foreign exchange market, the local unit opened at 83.91, then lost further ground and touched 83.95, registering a loss of 8 paise from its previous close.
On Monday, the Indian rupee settled for the day 3 paise higher at 83.87 against the American currency.
Asian currencies fell after appreciating on Monday. The Indian rupee opened at 83.91 and is expected to trade in a small range of 83.85/95, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
According to CR Forex Advisors' Amit Pabari with the Reserve Bank firmly in control, the rupee is likely to remain within a narrow range.
"The Reserve Bank of India has been actively intervening in the market, consistently absorbing inflows and preventing the rupee from reaching what many consider its fair value," Pabari said.
He further noted that this strategy has also contributed to a nearly USD 5 billion increase in India's forex reserves, providing a buffer against potential currency shocks.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.04 per cent to 100.89 points.
Brent crude was 0.23 per cent down at USD 81.24 per barrel in futures trade, as escalations in tensions in the Middle East took oil prices higher.
In the domestic equity market, the 30-share BSE Sensex fell 76.99 points, or 0.09 per cent, to 81,621.12 points, while the Nifty was down by 27.75 points, or 0.11 per cent, to 24,982.85 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 483.36 crore, according to exchange data.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
10:22 AM IST