The rupee fell 13 paise to 82.80 against the US dollar in early trading
Bombay:
The rupee depreciated 13 paise to 82.80 against the US dollar in early trading Monday after the central bank announced it would withdraw the highest denomination note from circulation.
In interbank foreign exchange, the domestic unit fell to 82.80 in the initial trade, down 13 paise in the latest close.
On Friday, the rupee settled at 82.67 against the dollar.
Traders will also assess the impact of liquidity after the RBI withdraws the highest denomination note from circulation, said Sriram Iyer Senior Research Analyst – Commodities & Currencies Reliance Securities Limited.
In addition, doubts were raised about the debt ceiling negotiations and a possible bankruptcy could hurt the US economy and ultimately hurt sentiment at home.
The Reserve Bank of India (RBI) made the surprise announcement on Friday but gave the public until September 30 to deposit Rs 2,000 notes into accounts or exchange them at banks.
It said it had asked banks to stop issuing Rs 2,000 notes with immediate effect.
However, markets could find support as the dollar was marginally weak Monday following a slightly less aggressive comment from Jerome Powell on interest rates, Iyer added.
The dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.14 percent to 103.04.
Brent oil futures, the global oil benchmark, rose 0.87 percent to USD 74.92 a barrel.
In the domestic stock market, the 30-stock BSE Sensex traded 254.67 points or 0.41 percent higher at 61,984.35. The broader NSE Nifty fell 86.50 points, or 0.48 percent, to 18,289.90.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they sold shares worth Rs 113.46 crore, according to exchange data.
Meanwhile, up for a second consecutive week, India’s forex cat rose $3.553 billion to $599.529 billion for the week ending May 12, the RBI said on Friday.
Total reserves were up $7.196 billion last week to $595.976 billion.
(This story has not been edited by DailyExpertNews staff and is auto-generated from a syndicated feed.)
