Ketaan Ram Kataria
New Delhi: The Indian rupee appreciated by 16 paise to 85.41 against the US dollar in early trade on Monday, tracking a weak greenback overseas and positive cues from domestic equity markets.
Forex traders attributed the gains to fresh foreign fund inflows and a decline in crude oil prices, which eased concerns over India’s import bill.
In the interbank foreign exchange market, the domestic currency opened at 85.45 and quickly rose to 85.41, gaining 16 paise from its last close. On Friday, the rupee had closed at 85.57 against the dollar.
The dollar index, which measures the value of the US dollar relative to a basket of six other currencies, continued to decline, according to analysts, as they anticipated that the US Federal Reserve will halt its rate hikes. The Indian rupee and other developing market currencies have seen an increase in investor sentiment as a result.
Meanwhile, Brent crude futures, the global oil benchmark, slipped to around $83 per barrel, providing further relief to the rupee. A lower crude price bodes well for India, which imports nearly 85% of its oil requirement.
In domestic markets, benchmark indices Sensex and Nifty opened higher, supporting the overall positive tone for the rupee. Market participants are now watching key global economic data and central bank commentary for further direction.
