Amid a global risk-off mood, the rupee tracked the broad strength of the US currency and sank 5 paise to 88.77 against the dollar in early Monday’s trading. The rupee is hovering close to its all-time closing low level, according to forex dealers, as the RBI keeps an eye on the dollar-rupee pair’s decline towards 88.80.
The rupee opened at 88.75 versus the US dollar and dropped to 88.77, a 5-paise decline from its previous close, on the interbank foreign currency market. The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, however, dropped 0.04 percent to 98.93.
In futures trading, Brent crude, the world’s benchmark for oil, increased 1.50 percent to $63.67 per barrel. Following a milder US-China trade battle, the dollar index was marginally lower, with the statement that geopolitical developments and global market volatility continue to be the main drivers in the near future.
According to market data, foreign institutional investors purchased stocks on Friday for a total of Rs 459.20 crore. According to RBI data, India’s foreign exchange reserves decreased by $276 million to $699.96 billion in the week ending October 3. India’s foreign exchange reserves fell $2.334 billion to $700.236 billion in the preceding reporting week.
