The rupee declined by 10 paise — or 0.1 per cent — on Monday to end at 82.31 against the US dollar, owing to rising crude oil benchmarks and strength in the greenback overseas. The rupee moved within a range of 15 paise against the American currency during the session, between 82.46 and 82.31, before settling 15 paise above the weakest level of the day. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The dollar index —  which weighs the US currency against six peers other than the rupee — was up 0.1 per cent at 102.6 at the last count. The gauge measures the value of the greenback against the euro, the Swiss franc, the Japanese yen, the Canadian dollar, the British pound and the Swedish krona.

Crude oil benchmark Brent was at $84.2 per barrel, up 5.5 per cent on the day, after the OPEC+ grouping of top oil producers announced a surprise cut in output by 1.16K  barrels per day.

India meets the lion's share of its oil requirement through imports, and surging oil rates inflate the country's import bill and in turn put pressure on the local currency.  

All eyes are on the outcome of a bi-monthly review by the RBI due on Thursday, wherein the central bank's all-powerful Monetary Policy Committee is widely expected to announce a hike in the benchmark interest rates. 

“The rupee is expected to remain in the range of 82-82.50 against the dollar as the market awaits the MPC's rate decision,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.

RBI Governor Shaktikanta Das-led MPC began its three-day meeting earlier in the day. Many economists keenly await signs of an end to the current cycle of rising interest rates that began in May 2022. 

Meanwhile, the S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose from 55.3 in February to 56.4 in March, signalling the strongest improvement in operating conditions in 2023 so far. 

 

Also Read: Stock market holiday: NSE, BSE to remain shut for Mahavir Jayanti, Good Friday this week