MUMBAI — The Indian rupee ended its six-session winning streak on Monday after dollar purchases by state-run banks limited its gains in the foreign exchange market.
The currency briefly strengthened to 93.69 against the US dollar, its highest level in six months. However, it later weakened and closed at 93.9275, compared with the previous close of 93.9050.
The rupee had gained more than 1% during the previous week and continued to show strength at the beginning of Monday's trading session. However, demand for dollars from state-run lenders outweighed the positive momentum.
Some market participants suggested that the dollar purchases could have been made on behalf of the Reserve Bank of India as part of efforts to address the imbalance between dollar supply and demand in the foreign exchange market.
Lower crude oil prices helped ease pressure on the Indian currency. Foreign investors also returned to Indian equities, providing additional support.
However, continued demand for the US dollar prevented the rupee from maintaining its early gains. Indian foreign exchange markets will remain closed on Tuesday due to a local holiday.
Market participants will continue to watch movements in crude oil prices, foreign investment flows and the US dollar for further direction.
.png)
The opinions posted here do not belong to 🔰www.indiansdaily.com. The author is solely responsible for the opinions.
As per the IT policy of the Central Government, insults against an individual, community, religion or country, defamatory and inflammatory remarks, obscene and vulgar language are punishable offenses. Legal action will be taken for such expressions of opinion.