Rupee falls 21 paise to 94.97 against US dollar in early trade
The Indian currency depreciated in Mumbai on Monday as the American currency showed strength in overseas markets.
The rupee declined by 21 paise to 94.97 against the US dollar during early trade on Monday, according to reports from The Hindu, BusinessLine and Deccan Herald. The depreciation occurred as the American currency gained strength in international markets.
In the interbank foreign exchange market, the rupee opened at 94.90 before dropping to 94.97. This follows a previous close of 94.76 on Friday, October 30. Forex traders noted that a positive domestic market and falling crude oil prices helped limit the decline.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO, said the USDINR is likely to trade between 94.40 and 95.60. He stated that RBI measures and market operations have helped manage volatility, supported by reserves of approximately USD 720 billion.
The dollar index was trading at 101.94, up by 0.07 per cent. Meanwhile, Brent crude futures fell by 3.07 per cent to $109.95 per barrel.
RBI data released on Friday showed India's forex reserves decreased by $1.269 billion to $719.748 billion for the week ending October 30. In the previous week ended October 16, reserves had dropped by $5.011 billion to $721.016 billion.
On the equity front, Sensex rose 764.72 points to 75,216.80 and Nifty climbed 201.40 points to 23,255.90 in early trade. On Friday, Foreign Institutional Investors were net buyers, purchasing equities worth Rs 3,598.54 crore.
