The rupee consolidated in a narrow range to settle 3 paise lower at an all-time low of 88.82 against the US dollar on Monday as a strengthening greenback in the overseas market and an overnight jump in crude oil prices impacted the Indian currency.
The USD/INR pair witnessed range-bound trade and settled 3 paise lower as support from positive domestic equities was offset by continued capital outflows and geopolitical developments. At the interbank foreign exchange, the rupee opened at 88.75 against the US dollar, and settled for the day at 88.82, a loss of 3 paise over its previous close. On Friday, the rupee depreciated eight paise to close at 88.79 against the US dollar. The rupee had fallen to an all-time low of 88.80 against the US dollar on September 30.
Though the rupee is expected to trade well on the strength in the domestic markets and overall weakness in the US dollar, complemented by a weak tone in global crude oil prices, importer demand for the dollar may cap sharp gains. USD/INR spot price is expected to trade in a range of 88.50 to 89.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.43, higher by 0.73 per cent. Brent crude, the global oil benchmark, was trading 1.61 per cent higher at USD 65.58 per barrel in futures trading.
Meanwhile, India's foreign exchange reserves decreased by USD 2.334 billion to USD 700.236 billion during the week ended September 26, according to the RBI data on Friday. In the previous reporting week, the reserves had declined by USD 396 million to USD 702.57 billion.
Also read: Rupee tumbles to all-time low, forcing RBI to intervene
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