The rupee slipped by 6 paise to 82.24 against the US dollar during early trade on Monday. On Friday, the rupee had settled at 82.18 against the US dollar. 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 at 102.4.
Crude oil benchmarks slipped on Monday. At the last count, brent crude futures were trading 0.8 percent lower at $73.55 per barrel. WTI futures, too, were trading 0.8 percent lower at $69.47 per barrel at the last count.
Amit Pabari of CR Forex said that last week, the rupee showed the sign of a reversal when it closed above 82.10 as risk aversion started to emerge.
He said the negatives for rupee would be the rupee settlement talks came to a halt with Russia last week, dollar index breaking out of a long consolidation zone and likely moving towards 104-105, weaker Chinese currency having a direct impact on the rupee, which is likely to move from 6.95 to 7.02 levels, as well as reducing interest rate differentials between the US and India.
However, on the positive side, he said FDIs and FIIs continue to invest.
"In a nutshell, market sentiment has changed from risk-on to risk-off, which majorly can push the USD higher. From the above reasons negatives have the upper hand and coupled with the seasonality factor, it could be a deadly cocktail. The overall bias remains toward rupee deprecation, and the USDINR pair has taken good support at 81.70, and in the coming days, it is likely to move towards 82.80 to 83.00 levels," Pabari said.
Indian benchmark indices opened Monday's trading session higher, with both NSE Nifty50 and BSE Sensex trading nearly 0.4 percent higher around 10.50am.
