The Indian rupee depreciated by 16 paise to 75.04 against the US dollar in opening trade on Monday, weighed down by the strength of the American currency in the overseas market.
At the interbank foreign exchange, the rupee opened on a weak note at 75, then fell further to 75.04, registering a decline of 16 paise from the last close.
On Friday, the rupee had closed at 74.88 against the US dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.14 per cent to 94.25.
"Dollar-Rupee opened at 75.00 levels and is expected to stay in the range of 74.70 to 75.20 for the day with flows from IPOs continuing to hit the market and outflows from oil companies absorbing the inflows," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
The market is awaiting the outcome of the US Fed meeting on November 3, OPEC meeting on November 4 and NFPR data on November 5. The effects of which will be seen on November 8, after the curtailed weekend, Bhansali said.
Exporters are likely to sell near 75.05 to 75.10 and importers are expected to buy near 74.80 levels for their near-term exposures, he added.
Global oil benchmark Brent crude futures declined 0.32 per cent to USD 83.45 per barrel. Global oil benchmark Brent crude futures declined 0.32 per cent to USD 83.45 per barrel.
Moreover, foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 5,142.63 crore, as per exchange data.
On the domestic equity market front, the 30-share Sensex was trading 308.47 points or 0.52 per cent higher at 59,615.40, while the broader NSE Nifty advanced 94.75 points or 0.54 per cent to 17,766.40.
Source:moneycontrol.com