Halting its five-session winning run, the rupee on Monday declined by 11 paise to close at 74.26 (provisional) against the US dollar, tracking the firm American currency.
At the interbank foreign exchange market, the domestic currency opened at 74.21 against the American currency and slipped further to close at 74.26, registering a decline of 11 paise over its previous close.
On Friday, the rupee had settled at 74.15 against the US dollar. During the session, the local unit touched an intra-day high of 74.21 and a low of 74.29 against the US currency.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd., said, "The rupee/dollar was once again caught in a lackluster trading range with the spot closing 11 paise higher at 74.26. This week the US CPI will be an important data point to watch. Along with that, a number of IPOs can bring fresh FPI money into the primary market. At the same time, RBI continues to absorb flows and protect USD-INR above 74.00. All in all, USD-INR may continue to oscillate between a range of 74.10-74.50 on spot for the time being."
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally down by 0.02 per cent at 92.77. Forex traders said easing crude oil prices and positive domestic equities will limit the depreciation bias of the local unit.
Brent crude futures, the global oil benchmark, fell 3.83 per cent to $67.99 per barrel. On the domestic equity market front, the BSE Sensex ended 125.13 points or 0.23 per cent higher at 54,402.85, while the broader NSE Nifty advanced 20.05 points or 0.12 per cent to 16,258.25.
Meanwhile, foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 69.37 crore, as per exchange data.
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