Rupee falls to 81.38 after reaching two-month high on RBI intervention
2 min read . Updated: 23 Jan 2023, 04:37 PM IST
PremiumRupee had reached 80.86 on the interbank order matching system immediately after the open, its highest level since December 1
The Indian rupee has dipped against the US dollar on Monday, after it climbed to a near two-month high at open on dollar purchases by public sector banks likely for central bank, according to traders.
The rupee last traded at 81.39 to the dollar, down from 81.12 in the previous session. It reached 80.86 on the interbank order matching system immediately after the open, its highest level since December 1.
"It was the RBI that stepped in to buy dollars and then it was the oil companies," said Anil Bhansali, head treasury at Finrex Treasury Advisors.
The RBI's dollar purchases and the dollar index's tumble have helped the Indian reserves rise to $572 billion, their highest level since early August last year.
Indian rupee at open was helped by the dollar index's fall to below 102.
After weak US data releases and softer inflation readings gave increased confidence that US Federal Reserve could be close to pausing its rate hike cycle.
The Brent crude rose 0.26 per cent to USD 87.86 per barrel, while the BSE Sensex rose by 319.90 points to 60,941.67 and NSE Nifty gained 90.90 points to settle at 18,118.55.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they sold shares worth ₹2,002.25 crore.
Indian rupee pared early morning gains as nationalise banks aggressively bought dollars as the local unit surpassed the level of 81. Among the Asian currencies, the rupee becomes the worst-performing currency as the bargain buyer along with importers rushed to buy to meet their month-end demand, said Dilip Parmar, Research Analyst, HDFC Securities.
“After today’s price action, the rupee may remain under pressure for a few days but for the trend reversal, it needs to cross the level of 82.11. In the near term, spot USDINR has support at 80.90 and resistance at 81.70, " he said.
“We expect Rupee to trade with a slight positive bias on a weak tone in the US Dollar and improved global risk sentiments. However, rebound in crude oil prices and concerns over global economic growth may cap sharp upside. USDINR spot price is expected to trade in a range of ₹80.50 to ₹82," said Anuj Choudhary, research analyst at Sharekhan by BNP Paribas