Mumbai: The Indian rupee began the week on a stronger footing, rising 20 paise to 87.39 against the US dollar in early trade on Monday. This gain came amid a rally in domestic equities and expectations of GST reforms following Prime Minister Modi’s Independence Day address.
At the interbank foreign exchange market, the rupee opened at 87.46 and soon touched 87.39, up from its previous close of 87.59 on Thursday. Forex and equity markets had remained shut on Friday due to Independence Day.
Expert view on movement
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the rupee was supported by the sharp rise in stock markets, with Gift Nifty trading 340 points higher. He expects the currency to move in a range of 87.30 to 87.75 for the day and possibly strengthen further if equities continue their upward momentum.
Global cues: oil and dollar index
On the commodities front, Brent crude futures slipped 0.06% to USD 65.81 per barrel. Crude prices have softened as Russia’s oil supply concerns eased. The U.S. has refrained from adding fresh pressure on Moscow or imposing new restrictions on Russian oil exports after the August 15 meeting, which has kept global oil trade stable.
Meanwhile, the dollar index—which tracks the greenback against a basket of six major currencies—was almost flat at 97.86, showing limited strength.
What traders are watching
Currency traders remain cautious as uncertainty continues over the India-US trade tariff discussions. Global investors are also closely watching the upcoming Jackson Hole Symposium, where U.S. Federal Reserve Chair Jerome Powell’s comments may provide signals on the possibility of an interest rate cut in the September meeting.
Equities boost sentiment
On the domestic front, strong equities added support to the rupee. The Sensex surged 1,021.93 points to 81,619.59, while the Nifty jumped 322.2 points to 24,953.50 in early trade. However, foreign institutional investors (FIIs) remained sellers, offloading equities worth ₹1,926.76 crore on Thursday.
