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| Photo Credit: The Hindu
The Rupee recovered from its all-time low levels and appreciated six paise to 83.32 against the U.S. dollar in morning trade on November 21, tracking the weakness of the American currency in the overseas market and positive domestic equities.
Forex traders said the Rupee fell to fresh record lows on November 20 despite broad weakness in the dollar against its major crosses on suspected importer-related buying.
At the interbank foreign exchange, the Rupee opened at 83.33, then touched 83.32 against the American currency, higher by six paise over its previous close. On Monday, the Rupee declined by 12 paise to settle at its all-time low of 83.38 against the U.S. dollar.
Investors will focus on the existing home sales data from the U.S. and weaker-than-expected numbers could keep the dollar weighed down. We expect the USD-INR (Spot) to trade sideways and quote in the range of 83.05 and 83.40, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial, said. Meanwhile, the dollar index was trading down by 0.21% to 103.21.
“Dollar index continues its fall as it moves down to 103.30 with the U.S. 10-year bond at 4.4060%. Market awaits for the FOMC meeting minutes which could give an idea of Fed’s stance on interest rates,” Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.
Brent crude futures, the global oil benchmark, was trading 0.53% lower at $81.88 per barrel. In the domestic equity market, the BSE Sensex advanced 255.12 points or 0.39% to 65,910.27 points. The NSE Nifty was up 80.15 points or 0.41% to 19,774.15 points.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹645.72 crore.