The much-needed support was given by robust domestic inflows, which caused the rupee to climb 12 paise to 85.86 against the US dollar in early trading on Monday. But, according to currency dealers, the local unit still faces difficulties due to hidden risks, which might range from crude oil prices to supply shortages.
The rupee began trading at 85.93 versus the US dollar at the interbank foreign exchange, made some progress, and closed at 85.86, up 12 paise from its previous finish. About the US dollar, the rupee gained 38 paise on Friday, closing at 85.98.
The aggregate reserves had the biggest weekly increase in two years last reporting week, rising $15.267 billion to $653.966 billion. The Reserve Bank of India made a $10 billion forex swap, which contributed to the increase in foreign reserves.
Meanwhile, exchange data shows that on Friday, foreign institutional investors (FIIs) bought stocks totaling Rs 7,470.36 crore on a net basis. According to the RBI’s Friday report, the nation’s foreign exchange reserves rose by $305 million to $654.271 billion in the week ending March 14.
In the meantime, the US dollar index, which shows how strong the US dollar is concerning a basket of six other currencies, was up 0.06 percent at 104.15. The benchmark for world oil, Brent crude, was down 0.37 percent at $71.89 a barrel in futures trading.
