A strong trend in local stocks helped the rupee gain 6 paise to 84.35 against the US dollar in Monday morning trading.
Significant headwinds for the USD/INR pair, according to forex traders, include high Dollar Index levels and an almost 5% spike in crude oil prices over the last week due to the intensification of the Russia-Ukraine crisis.
The rupee gained 6 paise over its previous closing at the interbank foreign exchange, where it opened at 84.38 and traded in a narrow range to reach 84.35 against the US dollar. The rupee rose 9 paise to settle at 84.41 versus the US dollar on Friday, recovering from its lowest point ever.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP, the Indian rupee started the day with slight gains as FPI sales significantly decreased and markets increased last Friday. RBI has also warned banks from taking long side positions in the USDINR pair for speculation purposes,” Bhansali said.
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