Rupee settles at 79.98 against the US dollar, briefs touch 80/ USD mark.

In intra-day spot trading on Monday, the rupee fell as low as 80 against the US dollar before completing the session 16 paise lower at 79.98 (provisional) as a result of an increase in crude oil prices and continuous outflows of foreign funds. The neighbouring unit at the interbank foreign exchange market opened at 79.76 against the dollar but lost ground to touch the psychological low of 80 against the American currency. The neighbouring unit recovered a few lost floors and closed at 79.98 (provisional), recording a decline of sixteen pence from its previous close. The rupee recovered from the near-eighty tiers on Friday to close higher by 17 paise at 79. 82 against the United States. 

The Indian rupee fell against the dollar on Monday after testing new lows, according to Sriram Iyer, Senior Research Analyst at Reliance Securities, as rising petroleum prices and ongoing foreign investment outflows put pressure on the currency. The dollar weakened even if most of its Asian and emerging market allies were stronger and had capped the weaknesses of the local unit. The Federal Reserve officers said they do not favour accelerating the rate of charge hikes, which made the dollar index vulnerable to changes on Monday afternoon in Asia, according to Iyer.

The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased by 0.58 percent to 107.43. The benchmark for international oil prices, Brent crude futures, increased 1.80% to USD 102.98 a barrel. On the domestic equity market front, the BSE Sensex finished 760.37 points, or 1.40 percent higher, at 54,521.15, while the larger NSE Nifty increased by 229.30 points, or 1.40 percent, to 16,278.50. According to alternative statistics, foreign institutional buyers continued to be active market participants on Friday, selling stocks worth Rs 1,649.36 crore.