Rupee Sees Modest Gain Against Dollar on Positive Equities; Forex Reserves Dip

Rupee modest gain: Indian rupee edged up by 3 paise against US dollar in early Monday tre, reaching 83.42, buoyed by a favourable performance in domestic equities.

Despite US dollar's strength in global markets and ongoing foreign fund outflows, rupee managed a slight appreciation, opening at 83.43 and touching 83.42 in initial tring, marking a 3-paise increase from previous close.

Anil Kumar Bhansali, He of Treasury and Executive Director at Finrex Treasury visors LLP noted rupee's resilience against dollar. He attributed limited movement to consistent purchases of US dollars by Foreign Portfolio Investors (FPIs) and oil companies, with Reserve Bank of India (RBI) intervening to prevent significant depreciation beyond 83.50 mark.

dollar index, which measures dollar's performance against a basket of major currencies, was marginally up at 105.16, gaining 0.13 per cent.

Market sentiment remained stable, with expectations of potential rate cuts in US following a softer-than-expected jobs report, as highlighted by Bhansali.

In oil market, Brent crude futures saw a modest rise of 0.23 per cent, reaching $83.15 per barrel.

Domestically, early tring in equity market showed positive momentum, with BSE Sensex climbing 434.04 points or 0.59 per cent, and NSE Nifty vancing 91.60 points or 0.41 per cent.

However, Foreign Institutional Investors (FIIs) were net sellers in capital markets on Friday, offloing shares worth Rs 2,391.98 crore.

ditionally, RBI reported a decline in India's forex reserves by $2.412 billion to $ 637.922 billion as of April 26, marking third consecutive weekly decrease in reserves.

With PTI Inputs