Early trading sees Rupee strengthening 6 paise to 79.76 against the dollar

18 Jul 2022 , 11:21 AM

Early on Monday, the rupee strengthened versus the US dollar by 6 paise to 79.76.

Forex outflows and a strong American dollar abroad, according to traders, limited the rupee’s advance. The rupee gained 6 paise from the previous close to open at 79.76 versus the US dollar on the interbank foreign exchange market.

In early transactions, the local currency saw an early high of 79.72 and a low of 79.81 in relation to the US dollar. On Friday, the rupee recovered from its lows near 80 to end the day 17 paise higher at 79.82 versus the US dollar.

“Before allowing a breach of the same level, RBI may continue to preserve it at 80. The rupee cannot maintain the huge trade imbalance if importers and debt businesses continue to purchase dollars to settle their debts “according to Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.

The 30-share Sensex was up 381.25 points, or 0.71 %, at 54,142.03 on the domestic equities front, while the larger NSE Nifty was up 136.35 points, or 0.85 %, at 16,185.55. The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.26 % to 107.77.

Benchmark Brent crude futures for the world’s oil increased 0.71 % to USD 101.88 a barrel. According to exchange statistics, foreign institutional investors continued to be net sellers on Friday in the capital market, selling shares worth Rs 1,649.36 crore.