Rupee gains 5 paise to open at 83.05 against the US dollar
The Indian rupee opened 5 paise higher against the US dollar on Monday, despite losses in Asian peers amid persisting worries over rising US yields. The local currency opened at 83.05 a dollar as compared to its Friday’s close of 83.10.
The 10-year US yield rose on growing expectations that the Federal Reserve will keep interest rates higher for longer. The dollar began was firm, following five straight weeks of gains.
In Asia, the offshore Chinese yuan dropped to near 7.32 to the dollar even after China cut its one-year benchmark lending rate by 10 basis points, lower than expected 15 bps reduction. The five-year lending rate was left unchanged.
On Friday, the rupee ended 5 paise higher at 83.10 a dollar.
However, elevated crude oil prices, weakness in the domestic equity market and FII outflows weighed on rupee, keeping it near an all-time low of 83.29 a dollar.
Investors will focus on the Fed’s Jackson Hole Economic Symposium this week.
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Crude oil prices rose. Brent crude gained 0.80% to $85.48 a barrel, while US West Texas Intermediate crude jumped 0.89% to $81.97 a barrel.
On the domestic front, the Indian equity indices, Sensex and Nifty were trading lower in the pre-opening session.
On Friday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹266.98 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹339.18 crore, as per provisional data available on the exchanges.
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Updated: 21 Aug 2023, 09:11 AM IST
