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Rupee Gains By 31 Paise Against Dollar

Easing of crude oil prices along with weakness in the dollar overseas supported the rupee.

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Rupee Gains By 31 Paise Against Dollar

Rupee vs dollar: Easing of crude oil rates along with weakness in the dollar overseas supported the rupee


The rupee advanced by 31 paise against the dollar on Monday. After opening higher at 69.48 against the dollar, the rupee gained on Thursday morning to as much as 69.39 against the greenback. Easing of crude oil prices along with weakness in the dollar overseas supported the rupee. Snapping a three-day losing streak, the rupee had settled at 69.70 against the US dollar on Friday, 17 paise higher compared to the previous close. Analysts say hopes of monetary policy easing by the central bank this week boosted the rupee.

Domestic equity markets started the week on a strong note, with the S&P BSE Sensex gaining over 200 points and the NSE Nifty index coming less than 15 points away from the 12,000 mark in intraday trade.

The 10-year government bond yield was at 6.95 per cent on Monday, as against previous close of 7.03 per cent.

Official data on Friday showed India's GDP or gross domestic product grew 5.8 per cent in the January-March period. With that, India lost its position as the fastest-growing major economy to China for the first time in one-and-a-half years.

The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, will release its second bi-monthly policy statement of the current financial year after the conclusion of a three-day meeting on Thursday.

Analysts expect the central bank to reduce the repo rate - the key interest rate at which it lends short-term funds to commercial banks.

"Given that growth is lower on all counts, a 25 bps (basis points) rate cut seems imminent. The central bank may also comfort the market by assuring that system liquidity would remain in surplus," forex advisory firm IFA Global said in a note.

In the international markets, the dollar index - which measures the greenback against six major peers - declined as much as 0.18 per cent on Monday. It was last seen trading 0.13 per cent lower.

Crude oil prices fell more than 1 per cent on Monday, extending losses of over 3 per cent from on Friday, when oil markets racked up their biggest monthly losses in six months amid stalling demand and as trade wars fanned fears of a global economic slowdown. Brent crude futures - the global benchmark for crude oil - were last seen trading 1.3 per cent lower at $61.16 a barrel.

Brent crude oil prices have dropped almost 20 per cent from their 2018-peak in late April.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis on Friday, according to data from the NSE.

(With agency inputs)



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