Rupee falls 8 paise to close at 83.06 against the the US dollar

The Indian rupee closed 8 paise lower against the US dollar on Monday, February 5, due to a robust American currency and surging global crude oil prices. However, the rupee found some support from positive cues in domestic equity markets and the inflow of foreign funds, according to forex traders.

Investors are keenly awaiting the Reserve Bank's upcoming monetary policy announcement. The rupee began the day at 83.03 against the dollar at the interbank foreign exchange, dropped to a low of 83.04, and then marginally recovered to 83.02, marking a 4 paise decrease from its previous close.

The rupee had closed flat at 82.98 against the dollar on Friday, following a 6 paise rise on the day of the interim Union budget, where the government indicated quicker fiscal consolidation and reduced borrowings for the next fiscal year.

The dollar index, which measures the greenback's strength against six currencies, was trading 0.11 per cent higher at 103.89.

Meanwhile, Brent crude futures, the global oil benchmark, increased 0.38 per cent to $77.62 per barrel. On the domestic front, the 30-share BSE Sensex was trading 124.27 points or 0.17 per cent higher at 72,209.90 points, and the broader NSE Nifty advanced 50.90 points or 0.24 per cent to 21,906.70 points. Exchange data revealed that Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, purchasing shares worth Rs 70.69 crore.

Also read: ECI issues strict directives to political parties to not involve children in election campaign