The rupee inched higher to 79.79 against the US dollar on Monday amid gains in domestic equities and an easing greenback overseas. Rising oil benchmarks, however, capped the gains.
The rupee hit a fresh low of 79.97 against the US dollar on Monday, as rising oil prices put pressure on the currency. Gains in domestic equities and an easing greenback overseas yielded slight support.
The rupee had opened higher at 79.79, after settling at 79.88 against the US dollar on Friday.
Global oil prices moved higher on Monday. Traders awaited the resumption of gas flow through the Nord Stream pipe from Russia to Germany after a shutdown for scheduled maintenance.
Brent futures rose almost one percent to $102.2 a barrel. West Texas Intermediate (WTI) futures followed suit, and were up 0.7 percent at $95.3 a barrel.
The dollar index — which gauges strength in the greenback against six peers — slipped marginally to 107.8.
Rahul Kalantri, VP Commodities at Mehta Equities, expects the dollar index to remain volatile this week. "We expect the rupee to remain volatile this week and could hold its support level of 80.35 on a closing basis."
Domestic equity benchmarks BSE Sensex and NSE Nifty50 built on to opening gains after a gap-up start, led by gains across sectors.
First Published: IST