The rupee edged higher by 20 paise to 87.39 against the US dollar in early trade on Monday, amid a positive trend in domestic equities.
Forex traders said the uncertainty over the trade tariffs issue between India and the US is likely to keep market participants cautious.
At the interbank foreign exchange market, the rupee opened at 87.46 against the US dollar, then touched 87.39, registering a gain of 20 paise over its previous close.
On Thursday, the rupee settled for the day at 87.59 against the US dollar.
The forex and equity markets were closed on Friday on account of Independence Day.
The Indian rupee opened a tad higher at 87.45 on the GST reforms that PM Modi recommended in his 15th August address to the nation, said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
“The range would be between 87.30 to 87.75 for the day, but as stocks rise with Gift Nifty up by 340 points, we expect the rupee to rise further during the day,” Bhansali added.
Meanwhile, Brent crude prices fell 0.06 per cent to USD 65.81 per barrel in futures trade.
Brent oil prices were at USD 65 per barrel and were lower on easing Russia supply concerns as the US did not exert more pressure on Russia to end the Ukraine war, and also did not put any measures to disrupt Russian oil exports after the meeting on August 15, he said.
Investors will monitor FED Reserve Chief comments at Jackson Hole this week for clues on the path of interest rate cuts in its next meeting in September, Bhansali added.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 97.86.
On the domestic equity market front, Sensex jumped 1,021.93 points to 81,619.59 in early trade, while the Nifty surged 322.2 points to 24,953.50.
Foreign Institutional Investors offloaded equities worth Rs 1,926.76 crore on Thursday, according to exchange data.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
