The rupee strengthened by 8 paise to 81.70 against the US dollar.
Mumbai:
The rupee appreciated by 8 paise to 81.70 against the US dollar in early trade on Monday tracking weakness in the American currency overseas.
Forex traders said significant foreign fund inflows and crude oil prices below $75 per barrel supported the local unit.
At the interbank foreign exchange, the domestic unit opened higher at 81.76 against the dollar and then recovered to 81.70, registering a gain of 8 paise from its previous close.
On Thursday, the rupee had closed at 81.78 against the American currency.
The forex market was closed on Friday on account of Buddha Purnima.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07 per cent to 101.14.
Global oil benchmark Brent crude futures rose 0.07 per cent to $75.35 a barrel.
Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors LLP, said the rupee is likely to remain range bound as RBI intervenes from both sides.
Bhansali said, “Forex reserves have moved up to $589 billion, which clearly shows that RBI is buying dollars and gold from the market. Markets await data on Eurozone industrial production and US consumer inflation expectations.” Is.”
India’s foreign exchange reserves increased by $4.532 billion to $588.78 billion in the week ended April 28, the Reserve Bank of India said on Friday.
The total reserves fell by $2.164 billion to $584.248 billion last week.
Foreign institutional investors (FIIs) were net buyers in the capital market on Friday as they bought shares worth Rs 777.68 crore, according to exchange data.
In the domestic equity market, the 30-share BSE Sensex advanced 447.03 points, or 0.73 per cent, to 61,501.32. The broader NSE Nifty rose 120.65 points, or 0.67 per cent, to 18,189.65.
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