Mumbai: The Indian rupee appreciated toward 84.78 per dollar in early trade Monday, but erased gains later in the day tracking the dollar gauge’s strength to close at 85.09. That marked a modest advance of 13 paise from a close of 85.21 in the previous session. The rupee opened at 85.05 and breached the 84 mark in the first half of the trading session, before closing weaker.
“Despite it being a US holiday, there was sufficient movement on both sides with dollar buying below 84.80 and dollar selling at 85.20,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.
Traders suggest the dollar-buying was on by nationalised banks and importers, while dollar sellers could be unhedged exporters. Dollar index was weaker at 98.6 in early hours of trading, and gained during the day towards 99.4 levels, adding pressure on rupee, traders said.
“Monday’s trade was a replication of the dollar index while trading activity was muted amid absence of global cues and due to holiday in the US and UK,” said Dilip Parmar, currency research analyst at HDFC Securities.
m.economictimes.com