Indian Rupee Opens Higher, Trades Lower in Morning Session
Mumbai, February 16: The Indian rupee slipped by 1 paisa to 90.67 against the US dollar in early trade on Monday, pressured by foreign investor outflows and a firmer US currency.At the interbank foreign exchange market, the rupee opened slightly stronger at 90.63 before easing to 90.67 against the greenback, down 1 paisa from its previous close. On Friday, the rupee had consolidated in a narrow range and settled 5 paise lower at 90.66 against the US dollar.
Crude Oil, Forex Reserves Add to Pressure
Forex traders said a marginal rise in global crude oil prices and a sharp fall in India’s foreign exchange reserves also weighed on the domestic currency.Data released by the Reserve Bank showed that India’s forex reserves declined by USD 6.711 billion to USD 717.064 billion in the week ended February 6. In the preceding reporting week, reserves had surged by USD 14.361 billion to a record high of USD 723.774 billion.
Dollar Index and Brent Crude Edge Higher
The dollar index, which gauges the strength of the US dollar against a basket of six currencies, was trading 0.02 per cent higher at 96.93.Meanwhile, Brent crude, the global oil benchmark, rose 0.04 per cent to USD 67.78 per barrel in futures trade.
Equity Markets Trade Lower in Early Session
In the domestic equity market, the Sensex declined 71.53 points to 82,555.23 in early trade, while the Nifty slipped 11.95 points to 25,459.15.Foreign institutional investors offloaded equities worth Rs 7,395.41 crore on Friday, according to exchange data.
Trade Balance Data in Focus
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee opened slightly stronger than Friday’s close and is expected to trade within a narrow range, as demand for cash is likely to remain lower due to the US Presidential Day holiday.Market participants are also awaiting India’s trade balance figures, which could be released by the commerce ministry later in the day.
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