Rupee Rebounds to 83.65 Against Dollar Amidst Market Dynamics
Mumbai: The Indian rupee staged a recovery, appreciating by 5 paise to 83.65 against the US dollar in early trade on Monday, supported by foreign fund inflows and potential Reserve Bank of India (RBI) intervention. The dollar’s retreat from elevated levels contributed to the rupee’s resilience after touching an all-time low of 83.70 on Friday.
Forex analysts noted that a weakening dollar, influenced by shifts in macroeconomic factors and US economic data trends, contributed to the dollar index easing to 104.29, down 0.10%. Despite these supportive elements, the rupee’s appreciation remained modest.
Brent crude futures rose to USD 83.20 per barrel, adding to market dynamics influencing currency movements. Meanwhile, India’s forex reserves surged to a record high of USD 666.854 billion, indicating robust capital inflows despite RBI actions potentially curbing rupee appreciation.
In domestic markets, the BSE Sensex declined by 264.92 points to 80,339.73, while the NSE Nifty dropped by 88.10 points to 24,442.80. Foreign Institutional Investors (FIIs) remained net buyers in capital markets, purchasing shares worth Rs 1,506.12 crore.
The rupee’s current trajectory reflects ongoing market volatility amidst global economic developments and RBI’s strategic interventions to manage currency dynamics and capital flows.
