The rupee opened 4 paise higher at 82.96 against the US dollar on Monday amid a weak American currency in the overseas markets and unabated foreign fund inflows.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% lower at 102.10.
However, a muted trend in the domestic equity markets and rising crude oil prices limited gains in the local unit.
On Friday, the rupee jumped 33 paise to settle at 83.00 a dollar, posting its biggest single-day gain in more than eight months.
“Be wary of sudden drops that may follow persistent inability to clear 83.4. Slippage past 83.02 could expose 82.78, while pull back above 83.19 would restore upside bias,” said Anand James, Chief Market Strategist at Geojit Financial Services.
Meanwhile, crude oil prices traded higher, restricting gains in rupee.
Brent crude futures rose 0.41% to $76.86 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.48% to $71.77.
In the domestic equity market, the 30-share BSE Sensex was trading 75.89 points, or 0.11%, lower at 71,407.86, while the NSE Nifty slipped 29.20 points, or 0.14%, to 21,427.45.
The foreign investors have graced the Indian equity markets with an influx of nearly ₹1.5 lakh crore in 2023, fuelled by optimism over the country’s resilient economic fundamentals amid shadows of a gloomy global scenario. Experts believe that the positive trend may continue in 2024.
On Friday, the Foreign institutional investors (FIIs) net bought Indian shares worth ₹9,239.42 crore, while Domestic Institutional Investors (DIIs) net sold shares to the tune of ₹3,077.43 crore, as per provisional data available on the exchanges.
(With inputs from PTI)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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