INR Vs USD: The dollar index softened 0.3 per cent to 96.718.
- The rupee opened lower at 70.50 a dollar and dropped further to quote at 70.55, 9 paise down over its previous close.
- Fresh demand for the American currency from importers amid rise in crude prices weighed on the domestic unit, forex dealers were quoted as saying in the PTI report.
- The dollar index, which tracks the greenback against a basket of peers, softened 0.3 per cent to 96.718. The dollar was 0.5 per cent weaker against the yen, at 113.047, and the euro gained 0.3 per cent to $1.1384, reported news agency Reuters.
- Oil prices rose, extending strong gains from the previous day amid the expected Organization of the Petroleum Exporting Countries (OPEC)-led supply cuts and a mandated reduction in Canadian output. US crude was 1 per cent higher at $53.46 per barrel, and Brent crude futures gained 0.9 per cent to $62.26 a barrel, reported Reuters.
- West Asia-dominated OPEC will, on December 6, meet at its headquarters in Vienna, Austria, to agree a joint output policy. OPEC will also discuss policy with non-OPEC production giant Russia.
- However, declines in the rupee were restricted amid fresh foreign inflows, traders said. Foreign portfolio investors bought shares worth Rs 293.12 crore on Monday, according to provisional data from the National Stock Exchange.
- IFA Global said that some further dollar-rupee short covering may be seen ahead of major domestic events.
- The outcome of the two-day meeting of the RBI will be revealed on Wednesday. A Reuters poll of 70 economists predicted the RBI would hold its repo rate at 6.50 per cent.
- Meanwhile, the key benchmarks of stock market - Sensex and Nifty - traded in the red. At 1:28 pm, the 30-share Sensex was at 36,072.67, down 168.33 points or 0.46 per cent and the 50-scrip Nifty was at 10,850.30, with a loss of 33.45 points or 0.31 per cent.
- IT stocks, which usually gain amid a fall the rupee, were the biggest sectoral gainers. Nifty IT- the index of information technology shares - gained 1.59 per cent. (With agency inputs)
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