New Delhi: The rupee appreciated by 5 paise to 83.44 against the US dollar in early trade on Monday, as the American currency and crude oil prices eased from their elevated levels. Forex traders noted that foreign fund inflows also boosted investor sentiment and supported the rupee.
At the interbank foreign exchange market, the rupee opened at 83.45 and rose to 83.44 against the dollar, marking a 5 paise increase from its previous close of 83.49 on Friday.
CR Forex Advisors MD Amit Pabari mentioned that the Reserve Bank of India (RBI) appears committed to preventing the rupee from depreciating below 83.70, despite the pressure from high oil prices.
“Positive economic indicators such as strong growth, stable inflation, a reduced fiscal deficit, record-high RBI forex reserves, and incoming fund inflows are all supportive factors that should ideally strengthen the rupee,” Pabari said. He added that, given these factors, the rupee is expected to trade within a broad range of 83.20 to 83.70.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was slightly lower by 0.01 percent, trading at 104.86.