Rupee rises 9 Paise to 86.43 against US dollars in early trade

The rupee appreciated 9 Paise up to 86.43 against the US Dollar in Early Trade on Monday, following a softer Greenback, although the benefit for the local unity was limited because the negotiations of the US India remained in focus.

Forex traders said that the rupee was in a narrow reach, because the demand for dollar from importers kept the American unit good offer against the rupid.

Moreover, the support of the development of trade agreements was canceled by the outgoing foreign fund, they said.

In the interbancial foreign exchange, the domestic unit opened on a positive note and hit 86.43 against the Greenback in initial deals, higher with 9 Paise from the previous closing level.

On Friday, the rupee refused 12 Paise to settle on 86.52 against the US dollar.

In the meantime, the dollar index, which measures the strength of the Greenback with a basket of six currencies, decreased 0.03 percent to 97.61. Brent Crude, the global oil benchmark, increased by 0.48 percent to USD 68.77 per barrel in Futures -Trade, supported by the development of trade agreements. Brent -Olijprijs stood from three weeks of lows in Asian trade to USD 68 per barrel after the EU and the US reached a trade agreement that enlightened tariff problems and increased future energy requirements, said Anil Kumar Bhansali, head of Treasury and performing director Finrex Treasury Advisors LLPP.

The investors are now looking at Fed’s developments, who will start his two -day policy meeting from Tuesday, Bhansali said.

“The Indian rupid is expected to be stable near 86.47 after the European deal was closed, but India still loves a convincing deal,” said Bhansali, adding that the question can keep the rupid stable at the end of the month.

In the meantime, Sesex fell 67.43 points or 0.08 percent to 81,395.66 on the domestic stock market, while Nifty fell 14.25 points or 0.06 percent to 24,851.25.

Foreign Institutional Investors (FIIs) have shares worth RS 1,979.96 Crore on a net basis on Friday, according to Exchange Data.

In the meantime, the Forex Kitty from India fell with USD 1.183 billion to USD 695,489 billion during the week ending on July 18, the RBI said on Friday.

In the last week, the overall Kitty with USD 3,064 billion had fallen to USD 696,672 billion. The reserves had a record high in USD 704,885 billion at the end of September 2024. PTI