Rupee Vs Dollar: The rupee is down 5.37% against the dollar so far this year
The rupee moved in a narrow range before ending nearly unchanged at 75.19 against the dollar on Monday. After opening mildly stronger at 75.15 against the greenback compared to its previous close of 75.20, the rupee moved between 75.08 and 75.21 during the four-hour session. Steadiness in the dollar overseas put pressure on the rupee, however gains in domestic equity markets and foreign fund inflows kept the losses in check, say analysts. (Also Read: Little Uptick In Rupee Expected Despite Multiple Positives. Here's Why)
Domestic stock markets gave up most of the day's gains after jumping more than 1 per cent amid broad-based gains. Investors are hopeful consumer inflation data due later in the day would lead to further monetary easing by the Reserve Bank of India.
International crude oil rates dropped on big spikes in COVID-19 infections over the weekend in the US and elsewhere, while traders awaited a technical meeting of the Organization of the Petroleum Exporting Countries (OPEC) expected to recommend an easing of supply cuts.
Brent crude futures - the global benchmark for crude oil - were last seen trading down 1.5 per cent at $42.59 per barrel. Brent has hovered $42 per barrel for a couple of weeks in some recovery from a 21-year low of $15.98 per barrel registered in April.
The dollar index - which gauges the greenback against six major currencies - was last seen trading flat.
"Looking at the price action in the rupee, it seems the central bank is looking to use bouts of dollar weakness to correct rupee overvaluation," said Abhishek Goenka, founder and CEO of forex advisory firm IFA Global.
"During periods of dollar strength, we may see the rupee depreciate to remain somewhere in the middle of the pack of its peer group counterparts," he said.
At the current level, the rupee has recovered 2.24 per cent from a record low of 76.91 logged in April, but is still down 5.37 per cent against the greenback so far in 2020, which makes it the worst performing Asian currency.
