Indian Rupee Begins the Week on a Positive Note Against US Dollar

Indian Rupee Begins the Week on a Positive Note Against US Dollar

VoM News Desk | September 18, 2023 | 08:59 AM IST | Breaking News | Follow on Google News

Indian Rupee Begins the Week on a Positive Note Against US Dollar

The Indian rupee kicked off the week on a positive note as it opened 10 paise higher against the US dollar. The local currency commenced trading at 83.09 against the greenback, a slight improvement from its previous close of 83.19 on Friday.

US Dollar Maintains Strength

While the Indian rupee showed some early strength, the US dollar continued to hover near its six-month peak, holding at 105.29 against a basket of major global currencies. The dollar’s persistent strength has been a prominent factor influencing currency markets worldwide.

Euro Rebounds Amid ECB Signals

The euro, after hitting a 3-1/2 month low of $1.0629 last week, made a modest recovery of 0.1% to reach $1.0673 in early Asia trade. This rebound followed signals from the European Central Bank (ECB) suggesting that its rate hikes may be coming to an end. The ECB’s stance played a role in the euro’s recent decline.

Rupee’s Recent Performance

On the preceding Friday, the Indian rupee had depreciated by 16 paise to close at 83.19 against the US dollar. Several factors, including concerns about elevated crude oil prices, the strength of the US dollar, and a widening trade deficit, have limited the rupee’s upside potential. India’s merchandise trade deficit reached a 10-month high of $24.16 billion in August, surpassing expectations and reflecting sluggish exports due to weak demand in Western markets and China.

Global Market Focus

Investors are closely monitoring central bank decisions scheduled for this week, starting with the US Federal Reserve’s announcement on Wednesday, followed by the Bank of England and the Bank of Japan. Crude oil prices, which reached a 10-month peak last Friday, are also being watched. Brent crude futures rose by 0.33% to $94.24 per barrel, and US West Texas Intermediate crude futures gained 0.50% to $91.22.

Domestic Market Indicators

In the domestic market, both the Sensex and Nifty were trading lower in the pre-opening session. On the previous Friday, Foreign Institutional Investors (FIIs) net bought Indian shares worth ₹164.42 crore, while Domestic Institutional Investors (DIIs) net purchased shares totaling ₹1,938.57 crore, according to provisional data available on the exchanges.

The performance of the Indian rupee against the US dollar and other factors in the coming days will continue to be closely watched by investors and market participants.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.