Indian Rupee Slips 21 Paise to 94.97 Against Dollar in Early Trade on Greenback Strength

The rupee depreciated 21 paise to 94.97 against the US dollar in early trade on Monday, pressured by broad strength in the American currency overseas. Forex traders noted that a positive domestic equity market and softening crude oil prices limited the downside.

At the interbank foreign exchange market, the rupee opened at 94.90 before slipping to 94.97 against the greenback, marking a 21-paise decline from its previous close of 94.76 on Friday.

“USDINR is likely to trade within 94.40–95.60 after ending October near 94.95. RBI measures and market operations have helped contain volatility, supported by reserves of around USD 720 billion,” said Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO.
Banerjee added that softer crude would support the rupee, while renewed oil strength would push USDINR toward the upper end of the range.

Meanwhile, the dollar index, which measures the greenback against a basket of six currencies, rose 0.07% to 101.94. Brent crude, the global oil benchmark, fell 3.07% to USD 109.95 per barrel in futures trade.

RBI data released on Friday showed India’s foreign exchange reserves dropped by USD 1.269 billion to USD 719.748 billion during the week ended October 30. In the previous reporting week ended October 16, overall reserves had declined by USD 5.011 billion to USD 721.016 billion.

Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth Rs 3,598.54 crore on a net basis on Friday, according to exchange data.

On the domestic equity front, the Sensex jumped 764.72 points to 75,216.80 in early trade, while the Nifty surged 201.40 points to 23,255.90.

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