2 hrs ago
Indian Rupee Gains as Oil Prices and Equities Support
The Indian rupee became a little stronger against the US dollar on Monday morning.
It reached 95.72 rupees per dollar after opening at 95.86.
Cheaper oil helped because India buys much of its energy from other countries.
Rising Indian stock markets also made investors more confident.
Foreign investors had bought Indian shares on the previous Friday.
However, oil companies still needed dollars to pay for imports.
The US dollar was also strong against other major currencies.
One analyst expected the rupee to stay between 95.60 and 96.50.
India’s foreign-exchange reserves decreased during the week ending September 11.
The rupee strengthened 24 paise to 95.72 against the US dollar in early Monday trade.
It opened at 95.86 after closing Friday at 95.96, though one analyst cited a Friday close of 95.89.
Lower Brent crude prices, rising Indian equities and improved foreign-fund sentiment supported the currency.
Oil-importer dollar demand and a stronger dollar index limited the rupee’s gains.
Analysts expected trading in a 95.60–96.50 range, while India’s forex reserves fell to $780.782 billion.
- Who
- The Indian rupee, foreign-exchange traders, investors and Indian market participants.
- What
- The rupee gained 24 paise to 95.72 against the US dollar in early trade.
- Where
- At the interbank foreign-exchange market in Mumbai, India.
- When
- Early Monday trade; the previous closing data referred to Friday, and reserves data covered the week ended September 11.
- Why
- Slightly lower crude prices, stronger domestic equities and improved foreign-fund sentiment supported the rupee, while importer dollar demand and a stronger US dollar limited gains.
Key facts
- Rupee level
- 95.72 per US dollar in early trade
- Opening level
- 95.86 per US dollar
- Previous close
- 95.96 on Friday, according to the market reports
- Brent crude
- Down 2.10% at $101.69 per barrel
- Dollar index
- Up 0.09% at 100.31
- Equity markets
- Sensex up 448.32 points to 74,743.28; Nifty up 50.30 points to 23,396.70
- Foreign-exchange reserves
- Down $4.924 billion to $780.782 billion in the week ended September 11
- Analyst range
- Expected rupee range of 95.60–96.50, with resistance at 96.40–96.50
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“Brent had a highly volatile last week: it closed at USD 105.68 on Monday, jumped to USD 108.75 on Tuesday after touching a weekly high of USD 109.45, before reversing sharply as concerns over Saudi supply disruptions began to ease”
thehansindia.com
deccanchronicle.com
“The rupee closed at 95.89 on Friday after being defended near 96 last week. We expect a broad range of 95.60–96.50, with the 96.40–96.50 zone acting as stiff resistance”
thehansindia.com
deccanchronicle.com
Sources
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