Mumbai, Oct 26 (PTI) The rupee depreciated for the third straight day and settled 22 paise lower at 95.15 against the US dollar on Monday, weighed down by elevated crude oil prices and geopolitical tensions in the Middle East.
Forex traders said the Indian rupee declined on positive dollar and slight gains in US Treasury yields, while a recovery in the domestic markets cushioned the downside.
At the interbank foreign exchange market, the rupee opened at 94.92 against the dollar, then lost ground to touch an intra-day low of 95.26 and finally settled for the day at 95.15, registering a decline of 22 paise over its previous close.
On Friday, the rupee depreciated 12 paise to close at 94.93 against the US dollar.
In the last three sessions, the rupee has lost 77 paise against the US dollar.
“We expect the rupee to trade with a negative bias due to risk aversion on escalation of geopolitical tensions in the Middle East and between Russia and Ukraine.
“Elevated crude oil prices amid supply concerns and selling pressure by FIIs may also pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.
The USD-INR spot price is expected to trade in a range of 94.90 to 95.50.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.01 per cent at 101.82.
Brent crude, the global oil benchmark, was trading lower by 1.41 per cent at USD 115.08 per barrel in futures trade.
“The immediate USD/INR range to monitor is 94.30-95.50. A sustained move above Rs 95.50 would indicate renewed depreciation pressure, whereas a break below Rs 94.30 could extend the rupee’s recovery.
“Overall, the currency outlook remains cautious, with oil supply risks and the direction of global interest rates likely to outweigh short-term support from central bank measures,” said Gaurav Garg, Head – Research, Lemonn.
On the domestic equity market front, Sensex climbed 482.92 points to settle at 73,606.75, while the Nifty rallied 153.20 points to 22,753.20.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,462.49 crore on a net basis on Monday, according to exchange data.
Meanwhile, RBI data released on Friday showed India’s forex reserves dropped by USD 5.011 billion to USD 721.016 billion during the week ended October 16. In the previous reporting week, the kitty declined by USD 8.578 billion to USD 726.027 billion. PTI DRR HVA
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