Rupee slips 4 paise to 88.69 against US dollar amid stronger greenback, high crude prices
Mumbai: The rupee weakened by 4 paise to 88.69 against the US dollar in early trade on Monday, weighed down by the strength of the American currency in global markets and elevated crude oil prices.
Forex traders said market sentiment for the rupee remained fragile amid ongoing global uncertainty.
“The US government shutdown is paradoxically boosting the dollar. With spending halted, fewer dollars are circulating, tightening supply and offering short-term support to the currency,” a trader explained.
At the interbank foreign exchange market, the rupee opened at 88.64 and slipped to 88.69 against the greenback, marking a decline of 4 paise from its previous close. On Friday, it had eased by 2 paise to 88.65 per dollar.
CR Forex Advisors Managing Director Amit Pabari said, “The RBI’s defence of the 88.80 level has become a visible line in the sand, keeping USD/INR capped. Strong resistance lies around 88.80–89.00 and support near 88.40, suggesting short-term consolidation within this range.”
He added that India’s robust economic fundamentals and improving investor sentiment continue to support a medium-term bias toward rupee strength. “A decisive break below 88.40 could open the door for further gains toward 88.00–87.70 levels,” Pabari noted.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.08 per cent to 99.68.
“The Federal Reserve’s cautious approach and the prolonged US government shutdown have added uncertainty, but not enough to drive a clear trend,” Pabari added.
In commodities, Brent crude futures rose 0.66 per cent to USD 64.05 per barrel.
On the domestic front, benchmark indices opened higher, with the Sensex climbing 202.48 points to 83,418.76 and the Nifty gaining 68.65 points to 25,560.95.
Foreign institutional investors were net buyers on Friday, purchasing equities worth Rs 4,581.34 crore, exchange data showed.
Meanwhile, India’s foreign exchange reserves fell by USD 5.623 billion to USD 689.733 billion for the week ended October 31, according to the Reserve Bank of India. Overall reserves had previously declined by USD 6.925 billion to USD 695.355 billion.
