Rupee falls 20 paise to 86.36 against US dollar in early trade
The Indian rupee weakened to 86.36 against the US dollar due to a strong American currency and declining domestic equities. The breach of the 86.00 level accelerated the rupee's fall, influenced by a recovering dollar index. Market participants ar...
By PTI |
Reuters
The rupee depreciated 20 paise to 86.36 against the US dollar in early trade on Monday, weighed down by the overall strength of the American currency in the overseas market and a negative trend in domestic equities.
Forex traders said the rupee extended its slide with the breach of the key 86.00 level accelerating the decline as a recovering dollar index sapped rupee sentiment.
At the interbank foreign exchange, the domestic unit opened at 86.27 against the greenback. In initial trade, it witnessed a low of 86.36, registering a fall of 20 paise over its previous close.
On Friday, the rupee settled 4 paise lower at 86.16 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 98.46.
"As the dollar recovered, the Indian rupee has been showing downside syndromes and is expected to move between 85.90 to 86.40 with a downward bias for the rupee," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Brent crude, the global oil benchmark, went up by 0.12 per cent to USD 69.36 per barrel in futures trade.
Forex traders said all eyes are now on the outcome of India-US trade talks, especially as the August 1 deadline for potential tariffs on Indian exports draws near.
If the discussions fail or get delayed, Indian exporters could face fresh pressure -- adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious, CR Forex Advisors MD - Amit Pabari said.
Pabari further added that for now, the trend continues to favour a weaker rupee. "The pair may find support around 85.70-85.80, but having crossed 86.00, the door is open for a possible move toward 86.50-86.80," he added.
Meanwhile, in the domestic equity market, Sensex declined 155.73 points or 0.19 per cent to 81,602.00, while Nifty fell 63.55 points or 0.25 per cent to 24,904.85.
Foreign institutional investors (FIIs) purchased equities worth Rs 374.74 crore on a net basis on Friday, according to exchange data.
Forex traders said the rupee extended its slide with the breach of the key 86.00 level accelerating the decline as a recovering dollar index sapped rupee sentiment.
At the interbank foreign exchange, the domestic unit opened at 86.27 against the greenback. In initial trade, it witnessed a low of 86.36, registering a fall of 20 paise over its previous close.
On Friday, the rupee settled 4 paise lower at 86.16 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 98.46.
"As the dollar recovered, the Indian rupee has been showing downside syndromes and is expected to move between 85.90 to 86.40 with a downward bias for the rupee," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
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Brent crude, the global oil benchmark, went up by 0.12 per cent to USD 69.36 per barrel in futures trade.
Forex traders said all eyes are now on the outcome of India-US trade talks, especially as the August 1 deadline for potential tariffs on Indian exports draws near.
If the discussions fail or get delayed, Indian exporters could face fresh pressure -- adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious, CR Forex Advisors MD - Amit Pabari said.
Pabari further added that for now, the trend continues to favour a weaker rupee. "The pair may find support around 85.70-85.80, but having crossed 86.00, the door is open for a possible move toward 86.50-86.80," he added.
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Meanwhile, in the domestic equity market, Sensex declined 155.73 points or 0.19 per cent to 81,602.00, while Nifty fell 63.55 points or 0.25 per cent to 24,904.85.
Foreign institutional investors (FIIs) purchased equities worth Rs 374.74 crore on a net basis on Friday, according to exchange data.
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