The Indian rupee strengthened by 13 paise to open at 68.33 against the US dollar in early trade on Monday, reported Press Trust Of India (PTI). The movement in forex market is due to increased selling of the US currency by exporters and banks amid flat opening in the domestic equity market. According to forex dealers, US dollar’s strength against some currencies overseas capped the gains today in the rupee. On Friday, the rupee had gained 33 paise to 68.46 against the US dollar, in line with a big relief rally in domestic equities.
Here are 5 latest developments that are impacting movement of Indian rupee today:
1. The domestic stock markets today started on a negative note. The S&P BSE Sensex skidded 43.02 points or 0.12 per cent to trade at 35,545.22 in early morning trade. The Nifty50 index tripped 7.25 points or 0.07 per cent to trade at 10,721.55.
2. The US dollar was a touch firmer against a basket of currencies at 94.720, having recoiled from a 95.324 top on Friday. It added 0.3 per cent on the yen to 110.97 and was again testing stiff resistance above 111.00.
3. Brent crude was down 61 cents at $78.62 a barrel today, while US crude fell 62 cents to $73.53. The pullback was modest given that the US crude rallied more than 8 per cent last week, while Brent gained more than 5 per cent, according to a report by news agency Reuters.
4. The euro took an early knock on Monday on reports of German Interior Minister Horst Seehofer rejecting a migration deal that German Chancellor Angela Merkel negotiated at a European Union summit on Friday. Euro was 0.2 per cent easier at $0.1662, having skidded as far as $1.1632 at one stage.
5. In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs. 1,380.94 crore during last week. Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) invested in equities worth Rs. 528.41 crore, or $79.66 million, in the week ended on June 29. (With Agencies Inputs)