Rupee Vs Dollar: The rupee fell 11 paise to 87.36 against the US dollar in early trade on Monday amid rising dollar demand.
However, forex traders said positive FII inflows and easing crude oil prices prevented a sharp fall in the local unit as traders awaited US Fed chief Jerome Powell’s speech at the Jackson Hole Symposium later in the day.
The domestic currency opened at 87.37 against the US dollar and touched 87.36, down 11 paise from its previous close. On Thursday, the rupee lost its early gains and closed 18 paise lower at 87.25.
Anil Kumar Bhasali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said, “The rupee fell yesterday (Thursday) due to dollar buying by importers and a large public sector bank. However, FPIs remained buyers of Indian equities, but despite the fall, the rupee could not touch the support level of 86.92 yesterday (Thursday) due to increased dollar buying.”
“Uncertainty over tariffs persists as we approach August 27, the date when the US will impose an additional 25 per cent tariff on Indian exports,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10 per cent to 98.72. Global oil benchmark Brent crude futures fell 0.18 per cent to trade at $67.55 a barrel.
Bhansali further added, “Brent crude prices were steady on Friday morning amid continued risk aversion ahead of further cues on US monetary policy by Fed Reserve Chairman Jerome Powell. However, oil prices trended towards weekly gains amid growing signs of a breakdown in peace talks between Russia and Ukraine.”
On the domestic equity market front, the stock market fell 262.05 points to 81,738.66 in early trade, while the Nifty fell 81.55 points to 25,002.20.
