Rupee trades in narrow range against US dollar in early trade

MUMBAI: The rupee witnessed range-bound trading against the US dollar in early trade on Monday, weighed down by a negative trend in domestic equities, elevated crude oil prices and strong American currency.

At the interbank foreign exchange, the rupee opened at 83.09 against the dollar, registering a rise of 7 paise over its previous close. The domestic unit also touched 83.13 against the American currency in initial trade.

On Friday, the rupee fell 13 paise to settle at 83.16 against the US dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 105.27.

Brent crude futures, the global oil benchmark, advanced 0.40 per cent to USD 94.31 per barrel.

Forex traders said the depreciation in the rupee can be attributed to several factors, including elevated crude oil prices, strong US dollar, foreign fund outflows and a widening trade deficit.

India's exports declined by 6.86 per cent to USD 34.48 billion in August this year as against USD 37.02 billion in the same month last year, government data showed on Friday.

Imports too declined by 5.23 per cent to USD 58.64 billion as against USD 61.88 billion recorded in August 2022.

Meanwhile, India's forex reserves dropped by USD 4.992 billion to USD 593.904 billion for the week ended September 8, the Reserve Bank of India said on Friday.

In the previous reporting week, the kitty rose by USD 4.039 billion to USD 598.897 billion.

In the domestic equity market, the 30-share BSE Sensex declined 174.33 points or 0.26 per cent to 67,664.30. The broader NSE Nifty fell 42.15 points or 0.21 per cent to 20,150.20.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Friday as they purchased shares worth Rs 164.42 crore, according to exchange data.