Currency update: Rupee takes 6-day streak of gains; slip 1 paisa to 83.55 against the US dollar

The rupee pared its early gains to close by 1 paisa at 83.53 (provisional) against the US currency on Monday, snapping its six-day gains on a strengthening dollar in overseas markets and a rise in crude oil prices.

A decline in India’s services PMI also weighed on investors while gains in domestic markets offset losses locally, forex dealers said.

Earlier in the day, the rupee opened at 83.44 against the greenback, 8 points higher than its previous close. However, it gave up gains during the day to finally settle at 83.53 (temporary) against the US dollar, 1 paisa lower than its previous close.

The rupee had closed at 83.52 on Friday.

“We expect the rupee to trade with a slight bias on positive global equities and fresh FII inflows. However, the sustainability of crude oil prices may be more likely,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said. .

A decline in India’s Services PMI to 58.9 in August from 60.9 in July also contributed to the rupee’s decline, he said.

The dollar index, which measures the greenback’s strength against six currencies, rose 0.34 percent to 101.06.

In the domestic equity markets, the Sensex jumped 384.30 points to settle at an all-time high of 84,928.61 while the Nify climbed 148.10 points to a high of 25,939.05.

Brent crude, the international benchmark, rose 0.26 percent to USD 74.68 per barrel in futures trading.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they bought shares worth Rs 14,064.05 crore, according to exchange data.

“Investors may pay attention to US GDP, consumer confidence and core PCE price index data from the US this week. We expect the USDINR to trade in the range of 83.35-83.75,” Choudhary added.