Rupee falls 8 paise to close at 83.37 against the US dollar

The Indian rupee ended 8 paise lower against the US dollar on Monday amid a recovery in the greenback in overseas markets. The local currency ended at 83.37 a dollar as compared to Friday’s close of 83.29.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06% higher at 103.32.

On Friday, the rupee settled at 83.29 against the dollar.

“The Indian rupee eked out opening gains and headed lower following the weaker Chinese currency. The market ignored the positive political news and lower crude oil prices as traders worried about the central bank’s two-way interventions,” said Dilip Parmar, Research Analyst, HDFC Securities.

Looking at the price actions, the rupee is facing resilience in crossing the 83.10 to 83.50 range, he said.

“However, the seasonality patterns and expectations of year-end dollar inflows may support the rupee in limiting losses in case of short covering bounce in the greenback,” Parmar said.

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Market participants now await RBI Monetary policy decision on December 8 and non-farm payroll data from the US on the same day.

Meanwhile, crude oil prices declined.

Brent crude futures for February fell 0.63% to $78.38 a barrel, while the US West Texas Intermediate (WTI) crude futures for January fell 0.55% to $73.66.

On the domestic front, the Indian stock market indices ended at their record closing highs, witnessing biggest one day rise in over one year. The sharp rally in the equities came after the Bharatiya Janata Party (BJP) won assembly elections across three major states, raising hopes that the US party will be able to retain power after the General Elections 2024 and the country will see a stable government.

The Sensex surged 1,383.93 points, or 2.05%, to end at 68,865.12, while the Nifty closed 418.90 points, or 2.07%, higher at 20,686.80.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹1,589.61 crore, according to exchange data.

(With inputs from PTI)

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