In Mumbai, the value of the Indian rupee increased slightly against the US dollar. It went up by 4 paise and settled at 83.34. This happened because the US dollar was not performing well in the international market, and the stock market in India was doing better.
The rupee stayed within a small range throughout the day. It started at 83.33 and ended at 83.34 against the dollar. The highest it reached was 83.32, and the lowest was 83.37.
Yesterday, the rupee hit its lowest point ever against the US dollar, settling at 83.38. An analyst named Anuj Choudhary from Sharekhan by BNP Paribas mentioned that the rupee improved slightly due to the weak US dollar and positive trends in Asian markets. But the gains were limited because of foreign investors selling their investments in India.
The US dollar’s value dropped, reaching its lowest in two and a half months. This happened because people thought that the US Federal Reserve might not increase interest rates in its upcoming meeting.
Traders are keeping an eye on US housing data and the minutes of the Federal Reserve’s meeting. The rupee might also be affected by changes in oil prices. Experts predict that the USD-INR spot price could range between 83 to 83.70.
The dollar index, which measures the dollar against other currencies, went down slightly to 103.37. Meanwhile, the price of Brent crude oil fell to USD 81.67 per barrel.
In India, the stock market performed well. The BSE Sensex increased by 275.62 points (0.42%) and closed at 65,930.77 points. The NSE Nifty also rose by 89.40 points (0.45%) to 19,783.40 points.
Foreign Institutional Investors (FIIs) sold shares worth Rs 645.72 crore in the Indian capital market on Monday.