Noida, July 6 (APAC Media): The rupee depreciated 10 paise to 95.28 against the US dollar in early trade on Monday, weighed down by sustained strength in the American currency overseas and cautious investor sentiment amid geopolitical uncertainties.
Forex traders said a firm dollar index and continued demand for the US currency from importers exerted pressure on the domestic unit despite supportive crude oil prices.
The local currency opened lower and was trading at 95.28 against the greenback in early deals, compared with its previous close of 95.18.
Market participants said investors remained cautious as they monitored global developments, while the dollar continued to find support from expectations surrounding the US interest rate outlook.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, traded higher in early Asian trade.
Brent crude, the global oil benchmark, was trading lower in international markets, offering some support to the rupee as softer crude prices help ease India’s import bill.
In the domestic equity market, benchmark stock indices were trading mixed during early deals.
According to exchange data, foreign institutional investors remained net buyers in Indian equities in the previous trading session, lending some support to market sentiment.
Traders said the rupee is likely to remain range-bound during the day, with movement expected to track the dollar index, crude oil prices and foreign fund flows.
–ENDS–
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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