Rupee slips 5 paise to 88.77 against US dollar amid global risk-off sentiment
Mumbai: The rupee traded in a narrow range and declined 5 paise to 88.77 against the US dollar in early trade on Monday, weighed down by the strength of the American currency and a cautious tone across global markets.
According to forex traders, the rupee is hovering near its all-time closing low as the Reserve Bank of India (RBI) closely monitors the USDINR pair’s movement toward the 88.80 mark.
At the interbank foreign exchange market, the local unit opened at 88.75 and later slipped to 88.77 against the greenback, down 5 paise from Friday’s closing level of 88.72.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, eased 0.04 per cent to 98.93. Brent crude futures, the global oil benchmark, rose 1.50 per cent to USD 63.67 per barrel.
“The rupee’s movement is influenced by the US dollar’s firmness and a mild global risk-off sentiment, along with domestic factors such as the RBI’s stable policy stance and a controlled inflation outlook,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Bhansali added that the dollar index softened slightly amid easing US-China trade tensions, though global market volatility and geopolitical developments continue to drive sentiment in the near term.
In domestic equities, the Sensex fell 451.82 points to 82,049 in early trade, while the Nifty slipped 109.55 points to 25,175.80.
Foreign Institutional Investors (FIIs) were net buyers on Friday, purchasing shares worth Rs 459.20 crore, according to exchange data.
India’s foreign exchange reserves declined by USD 276 million to USD 699.96 billion in the week ended October 3, following a drop of USD 2.334 billion in the previous reporting week, RBI data showed.
