The Indian rupee closed weaker on Monday as a rise in crude oil prices was offset by fall in the US dollar index.
The local currency weakened by 5 paise to close at 83.14 against the US dollar, according to Bloomberg. It had appreciated to over a two-month high to close at 83.09 on Friday.
The dollar index fell 0.13% to 104.59, while the Brent crude was 0.5% higher at $82.54.
With oil and dollar index on the positive side for the rupee and inflows from overseas investors coming in, the current rupee could gain more above 83, according to Anil Bhansali, executive director at Finrex Treasury Advisors LLP.
India's robust economic fundamentals and significant foreign exchange reserves provide a solid buffer for the RBI to counter any downward pressure on the rupee, according to Amit Pabari, managing director at CR Forex Advisors. "Additionally, substantial foreign direct investment inflows are anticipated."
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