New Delhi: The Indian rupee, which had initially strengthened, ended 1 paisa lower at 83.53 (tentative) against the US dollar on Monday, putting an end to its six-day winning streak because of a stronger dollar in international markets and an increase in crude oil prices. Forex traders mentioned that a decrease in India's Services PMI impacted investor sentiment, but gains in domestic equity markets limited losses in the local currency. At the beginning of the day, the rupee started trading at 83.44 against the US dollar, up by 8 paise compared to its last closing rate. Nevertheless, it surrendered its advances throughout the day to ultimately end at 83.53 (provisional) compared to the US dollar, marking a decrease of 1 paisa from its earlier closing rate. The rupee ended the week at 83.52 on Friday.
We anticipate the rupee to have a small positive inclination in its trading due to positive global equities and new FII inflows. Nonetheless, Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, stated that a rebound in the US dollar and high crude oil prices could limit significant gains. He mentioned that the decrease in India's Services PMI from 60.9 in July to 58.9 in August was also a factor in the rupee's decline. The dollar index, measuring the strength of the US dollar against a group of six currencies, increased by 0.34 pc to reach 101.06.
Sensex surged by 384.30 points to reach a new high of 84,928.61 in the domestic equity market, while Nifty also increased by 148.10 points, reaching a record level of 25,939.05. In futures trading, Brent crude, the global standard, rose by 0.26 percent to reach USD 74.68 per barrel. According to data from the exchange, Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, acquiring shares worth Rs 14,064.05 crore "US GDP, consumer confidence, and core PCE price index data from the US will be closely monitored by investors this week." Our anticipation is for USDINR.
FIRST Business Portal addressing the potential of business capability of North East Region.
