Due to foreign fund outflows and a stronger US dollar in overseas markets, the rupee fell 3 paise to 83.15 against the US dollar on Monday in limited trade.
According to foreign exchange dealers, the rupee’s losses were limited by a correction in crude oil prices and solid opening trade on domestic stock markets. Against the US dollar, the local currency started the interbank foreign exchange market 3 paise lower at 83.15.
In morning trade, the rupee fluctuated within a narrow range of 83.15 to 83.09 against the US dollar, ultimately closing at 83.15. On Friday, it had closed nearly flat at 83.12.
Due mostly to the Israel-Hamas conflict and a persistent increase in US bond yields, foreign portfolio investors, or FPIs, have pulled out of Indian equities totaling more than Rs 12,000 crore thus far this month.
In the meantime, the dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, increased by 0.12% to 106.30.
With the global oil benchmark Brent crude falling 0.79 percent to USD 91.43 per barrel on Monday, oil prices eased.
In terms of the domestic equity market, the Nifty was up 3.8 points, or 0.02 percent, at 19,546.45 points, while the Sensex increased 9.55 points, or 0.01 percent, to 65,407.17 points.
