Mumbai, Oct 21 : The rupee gained 1 paisa to reach 84.06 against the US dollar in early trade on Monday, rebounding slightly from its previous levels. The recovery was supported by positive trends in domestic equity markets and a softer US dollar, according to forex traders.
However, the rupee’s gains were capped by continued foreign fund outflows and rising crude oil prices. At the interbank foreign exchange, the rupee opened at 84.06 against the greenback, marking a slight improvement from its previous close of 84.07.
The US dollar index, which measures the strength of the dollar against six major currencies, dipped 0.05% to 103.25. Meanwhile, Brent crude futures rose 0.33% to USD 73.30 per barrel, adding pressure on the local currency.
On the domestic equity front, the Sensex surged by 457.90 points, or 0.56%, to 81,682.65, while the Nifty advanced 97.70 points, or 0.39%, to 24,951.75.
Foreign institutional investors (FIIs) remained net sellers on Friday, offloading shares worth Rs 5,485.70 crore, as per exchange data. Additionally, the Reserve Bank of India reported that India’s forex reserves dropped by USD 10.746 billion to USD 690.43 billion for the week ending October 11, following a decline of USD 3.709 billion the previous week.
