The Indian rupee settled eight paise below its previous close at a record low of 83.27 versus the US dollar on Monday. Earlier in the session, the currency rose 10 paise from its previous close vs dollar.
In the previous session, the currency ended at 83.19 against the greenback.
The dollar index — which measures the American currency against the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc and the euro — was last trading marginally lower, but above the 104-mark.
Crude oil benchmarks gained on Monday. At the last count, Brent crude futures were trading more than half a percent higher at $94.5 per barrel. WTI futures, too, were trading nearly a percent higher at $90.8 per barrel.
"The depreciation in rupee can be attributed to several factors, including the surge in crude oil prices, the strength of the US dollar, FII’s outflow from the equity market and a widening trade deficit amounting to $24.16 billion. As there was a huge USD short position in the NDF around 83.10, the stop losses were triggered immediately after the release of trade deficit data, leading to a sharp rise in the USD-INR pair," said Amit Pabari of CR Forex.
"To counteract these challenges and stabilize the rupee's value, the RBI is probability selling dollars in the spot market. The recent FX reserve data suggests that, RBI’s kitty fell by $4.99 billion to $593.90 billion," Pabari said.
First Published: Sept 18, 2023 5:02 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024 | How critical is Phase-5 for both NDA and I.N.D.I.A
May 20, 2024 7:30 AM
Lok Sabha Election Phase 5 Voting Live Updates: Leaders, actors among early voters as 49 seats poll today
May 20, 2024 6:34 AM