Rupee gains 8 paise against US dollar

Rupee gains 8 paise against US dollar

The rupee appreciated by 8 paise against the US dollar in early trade on Monday, supported by a weak dollar in the overseas market.

The appreciation bias was restricted by the fact that the local unit was weighed down by weak domestic equities.

The domestic unit opened at 81.26 against the dollar and gained ground to reach 81.25, registering a rise of 8 paise over its previous close.

The rupee had settled down by 7paise at 81.33 against the dollar on Friday.

The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.37 per cent to 104.15.

Brent crude futures, the global oil benchmark, rose 1.05 per cent to USD 86.47 per barrel.

The 30 share BSE Sensex was trading at 62,728, or 139.99 points or 0.22 per cent lower in the domestic equity market. The broader NSE Nifty fell 22.60 points or 0.12 per cent to 18,673. Foreign Institutional Investors FIIs were net buyers in the capital markets on Friday as they purchased shares worth Rs 214.76 crore, according to exchange data.

Forex traders said that the Reserve Bank of India's monetary policy decision will be closely watched by investors for further cues.

The Reserve Bank may opt for a lower rate increase of 25 -- 35 basis points in lending rates, given retail inflation showing signs of moderation and the need to push growth, according to experts.

The Monetary Policy Committee MPC will hold a bi-monthly policy review on December 7 at the end of a three-day meeting on Monday.