Mumbai: In early trade on Monday, the Indian rupee strengthened by 2 paise to settle at 83.97 against the US dollar, buoyed by a weaker greenback and a decline in crude oil prices.
The increase in the country’s foreign exchange reserves, which reached an all-time high of USD 704.88 billion on Friday, has further supported the domestic currency, according to forex analysts.
At the interbank foreign exchange market, the rupee began trading at 83.96, a 3 paise increase from its previous close of 83.99, before adjusting to 83.97. Despite this gain, tensions in the Middle East and foreign institutional investors (FIIs) pulling out capital limited further appreciation.
The Reserve Bank of India reported a significant rise in forex reserves, with an increase of USD 12.588 billion for the week ending September 27.
In the domestic equity markets, the Sensex rose by 228.16 points (0.28%) to 81,916.61, while the Nifty climbed 67.60 points (0.27%) to reach 25,081.30, recovering from last week’s sharp declines.
The dollar index, which reflects the greenback’s strength against a basket of six currencies, dipped marginally by 0.01% to 102.50. Additionally, Brent crude oil prices fell by 0.44% to USD 77.71 per barrel in futures trading.
On Friday, FIIs were net sellers in the capital markets, offloading shares worth ₹9,896.95 crore in the cash segment, according to data from exchanges.
