Rupee drops by 9 paise to 75.35 a dollar on high crude oil prices

Mumbai, Oct 18 (PTI) | Publish Date: 10/18/2021 1:58:30 PM IST


The rupee ended 9 paise lower at 75.35 against the US dollar on Monday, tracking a stronger greenback against key rivals overseas and rising global crude oil prices.

At the interbank forex market, the local unit opened on a steady note and later traded in a narrow range of 75.24 to 75.38 against the American currency.

On Thursday, the rupee had settled at 75.26 against the US dollar. The forex market was closed on Friday for ‘Dussehra’ holiday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.19 per cent at 94.12. Brent crude futures, the global oil benchmark, rose 1.11 per cent to USD 85.80 per barrel.

On the domestic equity market front, the BSE Sensex surged 459.59 points or 0.75 per cent to end at 61,765.59; while the broader NSE Nifty jumped 138.50 points or 0.76 per cent to settle at 18,477.05.

Foreign institutional investors remained net buyers in the capital market on Thursday, as they purchased shares worth Rs 1,681.60 crore, as per exchange data.

Dilip Parmar, Research Analyst at HDFC Securities said the rupee started the week on a backfoot ignoring strong gains in domestic equities, as traders gave more importance to rising crude oil prices and the US Treasury Yields. Brent crude oil prices stayed above USD 85 per barrel while US 10 Year benchmark bond yield quoted above 1.60 per cent. On Domestic bourses, trading volume remained light following holiday on Tuesday, however, the direction remains downward for the rupee after trade deficit data.

In near term, spot USDINR is having resistance around 75.70 level and support around 74.90.

Jateen Trivedi, Senior Research Analyst at LKP Securities said, “Rupee traded in a narrow range between 74.25-74.40 as higher crude prices kept the pressure in rupee. Going ahead rupee range can be seen between 74.25-74.75.”