Weakness in the dollar overseas along with gains in domestic equity markets supported the rupee
- The rupee opened at 69.76 against the dollar on Monday, and edged higher to 69.75 in morning trade.
- The Sensex rose as much as 208 points to an intraday high of 36,285, while the Nifty hit 10,923, up 63 points from the previous close.
- The dollar index, which measures the American currency against six major peers, rose 0.04 per cent to 96.44. It was on track to end December with a loss of 0.9 per cent but was still up for the year.
- Significant foreign fund outflows and rising crude oil prices however kept the strength in the rupee in check, news agency Press Trust of India reported citing traders.
- Crude oil international benchmark Brent gained more than 1 per cent on Monday to trade near the $54 a barrel mark.
- Foreign funds net sold shares worth Rs 119.60 crore on Friday, while domestic institutional investors (DIIs) net bought equities worth Rs 1,199.40 crore, provisional data from the NSE showed.
- Analysts expect the rupee to trade in a likely range of 69.55-70.00 against the dollar with a downside bias.
- “The overall risk sentiment has improved. Asian currencies are trading stronger against the US dollar…Asian stocks trading higher,” said forex advisory firm IFA Global.
- The rupee, set to end December with only a marginal gain, is likely to finish calendar year with a loss of around 9.5 per cent.
- Last Friday, the rupee had finished at an over one-week high of 69.95 against the dollar, on strong buying of the greenback by banks and exporters.
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