Rupee opens nearly 2 paise down at 68.06 against dollar
NEW DELHI: The rupee opened nearly 2 paise down at 68.06 against dollar on Monday on account of buying of American currency by banks and importers amid weak global cues.
Meanwhile, the domestic equity market opened flat with marginal losses on Monday. Equity benchmark Sensex opened 15.66 points down at 0.06 per cent at 27,866.80, while the 50-share NSE Nifty index opened 5.70 points, or 0.07 per cent, down at 8,635.55.
The local currency closed nearly 4 paise higher at 68.04 against dollar on Friday. Recent, rally in the domestic equities, which helped stocks to post their highest weekly gains in nearly eight months, lend further support to rupee in the last trading session.
According to Nirmal Bang Commodities, rupee can give a dip up to 68.18 against dollar during the day. Later in the day, the currency is expected to trade with a sideways to positive bias. “Trading in the expected intraday range of 68.18 – 68.45 is recommended,” the brokerage house said.
ICICI Securities in a research note said, “The rupee rose to a near-two-week high on Friday against the dollar, as higher domestic shares and improved dollar inflows pared initial losses from a strong greenback ahead of US economic data.”
Foreign portfolio investors stood net buyers in equity markets on Friday as they bought shares worth Rs 1,234.08 crore with gross purchases and gross sales of Rs 8,879.99 crore and Rs 7,645.91 crore, respectively.
Government bonds recouped the day’s losses to end higher for a fifth session, on aggressive demand for short-term notes at a weekly debt auction. The benchmark 6.97% 2026 bond yield fell to 6.40 per cent from 6.42 per cent in the previous session.