The Indian rupee was down by 7 paise and touched Rs 84.73 against US dollar in early trade on December 9. The decline can be attributed to the outflow of foreign money and less activity in the Indian equity market.
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Rupee has slipped 7 paise and touched Rs 84.73 against US dollar in early trade on December 9. The decline can be attributed to the outflow of foreign money and less activity in the Indian equity market. The Indian rupee continues to be weak due to high demand for dollars from importers and foreign banks.
The US dollar index (DXY) was trading higher by 0.08 per cent at 106.14.
The Indian rupee opened at Rs 84.70 at the Interbank foreign exchange against the US dollar. It touched Rs 84.73 in the initial trade, showing a fall of 7 paise compared to its previous close.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “Although, an overnight rally in the Dollar could keep the local unit under pressure this Monday’s trade. The Rupee opened at Rs 84.6800 against the U.S. dollar, compared with Rs 84.6925 in the previous session. The broad range for the USDINR spot remains between Rs 84.5500 to Rs 84.7000 this Monday. Domestic traders will await a key inflation number this week.”
The rupee appreciated by 5 paise to settle at Rs 84.66 against the US dollar on Friday.
“On the domestic front, all eyes will be on Industrial Production (IIP) and CPI data following last week’s RBI monetary policy announcement. The 50-basis point CRR cut provided much-needed liquidity and lent support to the Rupee,” said, MD Amit Pabari CR Forex Advisors.
On Friday, the Reserve Bank of India kept its key interest rate unchanged due to inflation concerns. However, it reduced the Cash Reserve Ratio, which is the amount banks must keep with the central bank, to increase the money available for lending and support the slowing economy.
India’s forex reserves rose by $1.51 billion to reach USD 658.091 billion for the week ending November 29, the RBI said on Friday. In the previous week, the reserves had fallen by $1.31 billion to $ 656.582 billion.
