Dollar Vs Rupee: Rupee weakened against dollar on the first day of the week, Indian currency opened falling by 16 paise

The rupee fell 16 paise to 83.10 against the dollar in early trade on Monday. The reason for this is believed to be the strengthening of the dollar along with the fall in the stock market. Forex traders said the outflow of foreign funds from domestic equities and the rise in crude oil prices also weighed on the Indian currency.

Today, the Indian currency opened weak at 83.04 at the Interbank Foreign Exchange and touched a low of 83.10 against the greenback. It registers a fall of 16 paise from the previous close. On Friday, the rupee closed at 82.94 against the dollar with a rise of 19 paise.

Analysts attributed the rupee's gains to JPMorgan's announcement that it will include Indian government securities in its global bond index from June 2024, a move expected to bring inflows of US$25-30 billion into the Indian debt market.

The dollar strengthened at the end of the month on rising demand for the American currency from importers and a rise in US Treasury yields. Meanwhile, the dollar index declined marginally by 0.01 percent to 105.58. Global oil benchmark Brent crude futures rose 0.19 percent to US$93.45 per barrel.

Today both the stock market indices are trading flat. Fluctuations continue in the Indian stock market. Today BSE Sensex was trading at 65,988.47 points down by 20.68 points or 0.03 per cent. The broader NSE Nifty fell 12.65 points, or 0.06 percent, to 19,661.60.

India's foreign exchange reserves declined by US$867 million to US$593.037 billion in the trading week ended September 15, the Reserve Bank of India said on Friday. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,326.74 crore on Friday.