Mumbai, Sep 21 (PTI) The rupee appreciated 18 paise to close at 95.78 against the US dollar on Monday as crude oil prices retreated from their elevated levels on improved global risk sentiment amid expectations of diplomatic talks between the US and Iran.
Forex traders said the Indian rupee firmed on weak crude oil prices amid hopes of diplomatic talks between the US and Iran. Moreover, positive domestic markets and softening of US Treasury yields also supported the local unit.
At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar, then gained some ground and touched 95.72 against the American currency in intraday trade.
At the end of the trading session on Monday, the rupee settled at 95.78 against the American currency, higher by 18 paise from its previous close.
On Friday, the rupee closed lower by 7 paise at 95.96 against the US dollar.
“We expect the rupee to trade with a slight positive bias on falling crude oil prices from higher levels, as improved global risk sentiments amid expectations of diplomatic talks between the US and Iran.
“However, reports that Iran shot down a US drone in the Strait of Hormuz may again deteriorate risk sentiments. Expectations of an increase in supplies from Saudi Arabia may also pressurise crude oil prices, which may be supportive for the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.
USD-INR spot price is expected to trade in a range of 95.55 to 96.05, Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.32, higher by 0.10 per cent.
Brent crude, the global oil benchmark, was trading lower by 2.08 per cent at USD 101.71 per barrel in futures trade.
On the domestic equities market front, Sensex jumped 564.03 points to settle at 74,858.99, while the Nifty rose 67.90 points to close at 23,414.30.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 576.20 crore on a net basis on Monday, according to exchange data.
Government data released on Monday showed the output of the country’s nine key infrastructure sectors slowed down to a three-month low of 4.8 per cent in August due to a fall in the production of coal, natural gas, crude oil, and fertiliser. The output expanded by 6.2 per cent in the same month last year and by 5 per cent in July this year. PTI DRR HVA
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