Rupee vs Dollar: Domestic currency rises 7 paise to close at 83 against American dollar

Rupee vs Dollar: The rupee (INR) settled at 83 (provisional) against the US dollar on Monday, February 12. On softness in the American currency and easing crude oil prices, the local currency registered a gain of 7 paise for the day from its previous close. Throughout the session, the domestic currency oscillated within a range of 82.98 - 83.02.

However, weak domestic markets and foreign fund outflows capped sharp gains, said PTI citing forex traders.

At the interbank foreign exchange, the rupee began the day at 83.01 against the dollar and fell to as low as 83.02 during the session before settled at 83 against the greenback for the day. The currency hit an intra-day high of 82.98.

"We expect the rupee to trade with a slight positive bias, positive global equities and a slight correction in the greenback. However, any bounce back in crude oil prices amid ongoing geopolitical tensions in the Middle East and selling pressure from foreign investors may weigh on the rupee at higher levels," said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Traders may take cues from India's CPI and IIP data.

"Headline inflation is expected to ease to 5.09 per cent from 5.69 per cent. Investors may remain vigilant ahead of US inflation data on Tuesday," Choudhary said, adding the USD-INR spot price is expected to trade in range of Rs 82.80-83.20.

Meanwhile, the dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.04 per cent higher at 104.15.

Brent crude futures, the global oil benchmark, rose 0.51 per cent to USD 81.77 per barrel.

Contrast to this, domestic equity benchmarks Sensex and Nifty declined by 0.73 per cent and 0.76 per cent. The 30-share benchmark BSE Sensex declined 523 points for the day to settle at 71,072.49 points, while the broader NSE Nifty fell 166.45 points to 21,616.05 points.

According to exchange data, foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth Rs 141.95 crore.

Meanwhile, India's forex reserves jumped by USD 5.736 billion to USD 622.469 billion for the week ended February 2, the Reserve Bank said on Friday.

In the previous week, the overall reserves had increased by USD 591 million to USD 616.733 billion.

With PTI Inputs