The Indian rupee reached a historic low of 83.37, and low volatility is anticipated due to the lack of major US economic data releases. Crude price rose by 0.59%, with a 0.19% increase in NSE Nifty.
The Indian rupee showed resilience, gaining 3 paise to 83.37 against the US dollar in early Monday trade, bolstered by sustained foreign funds and a bullish domestic equity market. However, as noted by forex traders, rising crude oil prices posed a challenge.
Opening at 83.39 at the interbank foreign exchange market, the rupee reached 83.37, a 3-paise increase from the previous close. Analysts, including Gaurang Somaiya from Motilal Oswal Financial Services, highlighted the importance of monitoring upcoming monetary policy decisions, especially from the US Federal Reserve. Somaiya noted that the commentary from the US Fed Governor might influence market sentiment.
Anticipating low volatility due to the absence of major US economic data releases, the USD-INR (spot) was expected to trade between 83.20 and 83.50. The dollar index showed a marginal 0.03% increase at 103.66.
In currency movements, Brent crude futures rose by 0.59% to USD 76.29 per barrel. Domestically, the 30-share BSE Sensex breached the historic 70,000 level, gaining 0.28%, while the NSE Nifty climbed 0.19% at 21,009.10 points. Foreign Institutional Investors (FIIs) were net buyers on Friday, injecting Rs 3,632.30 crore into the capital markets.
The Reserve Bank of India (RBI) maintained the benchmark repurchase rate at 6.5%, with a retail inflation projection of 5.4% for the fiscal year. As per the latest RBI data, India’s foreign exchange reserves surpassed USD 600 billion, reaching USD 604 billion as of December 1.
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