Rupee rises 8 paise to 82.99 against US dollar in early trade
"If the inflation prints releases lower than expected, the dollar index is likely to correct towards 102.50 levels which will push the rupee stronger.
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MUMBAI: The rupee appreciated 8 paise to 82.99 against the US dollar in early trade on Monday, amid weakness of the American currency in the overseas market.At the interbank foreign exchange, the domestic currency opened at 83.01, then touched 82.99 against the greenback in initial deals, registering a rise of 8 paise from its previous close.
On Friday, the domestic currency settled at 83.07 against the dollar.Investors are now awaiting US inflation data on Tuesday for further cues.
"If the inflation prints releases lower than expected, the dollar index is likely to correct towards 102.50 levels which will push the rupee stronger. On the flip side, if released stronger, the upside potential for DXY (US Dollar Index) is up to 105 levels, but USDINR is not likely to breach past 83.25 levels on the upside," CR Forex Advisors MD Amit Pabari said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 104.03.Brent crude futures, the global oil benchmark, declined 0.51 per cent to USD 81.77 per barrel.In the domestic equity market, the 30-share BSE Sensex was trading 140.34 points or 0.20 per cent lower at 71,454.25. The broader NSE Nifty declined 39.35 points or 0.18 per cent to 21,743.15.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they bought shares worth Rs 141.95 crore, according to exchange data.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.
