Rupee Settles 3ps Higher At 87.34/$

Mumbai: The rupee settled with a gain of 3 paise at 87.34 against the US dollar on Monday amid weakness of the American currency in the overseas market and lower crude oil prices. According to forex traders, investors’ upbeat sentiment was restricted due to volatile domestic equity markets and unabated withdrawal of foreign funds. At the interbank foreign exchange, the rupee opened at 87.36 and moved in a wide range during the session, touching the intraday high of 87.25 and the low of 87.41 against the greenback. The unit ended the session at 87.34 against the dollar, registering a gain of 3paise from its previous closing level. On Friday, the rupee fell 19paise to settle at 87.37 against the US dollar.

Moreover, on the domestic macroeconomic front, a monthly survey showed that India’s manufacturing sector growth fell to a 14-month low in February amid softer increase in new orders and production. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) registered 56.3 in February, down from 57.7 in January, but remained firmly within the ‘expansionary’ territory.

However, they said, the domestic currency found some support due to selling of dollars by exporters and receding crude oil prices overseas. “There are reports of selling of dollars by exporters which also supported the rupee. However, disappointing macroeconomic data and selling pressure from FIIs capped sharp gains,” said Anuj Choudhary - Research Analyst at Mirae Asset Sharekhan.