Rupee rises 4 paise against US dollar

Weak crude oil prices also supported the domestic unit, said Anuj Choudhary - Research Analyst, Sharekhan by BNP Paribas.However, FII outflows capped sharp gains.Foreign Institutional Investors FIIs were net sellers in the capital market on Friday as they offloaded shares worth Rs 626.62 crore, according to exchange data.The US dollar declined on rising expectations of a pause in a rate hike in the June FOMC meeting.

The rupee gained 4 paise to settle at 82.43 against the US dollar on Monday, supported by easing crude oil prices and a positive trend in domestic equities.

At the interbank foreign exchange market, the local unit opened at 82.45 against the US dollar and settled at 82.43, up 4 paise over its previous close.

During the day, the domestic unit witnessed an intra-day high of 82.40 and a low of 82.48.

On Friday, the rupee closed at 82.47 against the US currency.

The rupee traded on a flat to positive note on Monday on positive domestic markets and weakness in US Dollar. Weak crude oil prices also supported the domestic unit, said Anuj Choudhary - Research Analyst, Sharekhan by BNP Paribas.

However, FII outflows capped sharp gains.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 626.62 crore, according to exchange data.

The US dollar declined on rising expectations of a pause in a rate hike in the June FOMC meeting. This has also led to positive sentiments in global markets.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.26 per cent to 103.28.

Meanwhile, global oil benchmark Brent crude futures declined 2.31 per cent to USD 73.06 per barrel.

''We expect the rupee to trade with a slight positive bias on risk-on sentiments in global markets and weakness in US Dollar. Sharp fall in crude oil prices may also support the domestic currency,'' Choudhary said.

The Indian rupee started the week on a positive note amid a weaker greenback after US job data. The lower crude oil prices have supported the rupee in Monday's session even after foreign fund selling in the equities.

Indian traders will eye headline CPI which is expected to further moderate in May, due to strong favourable base effects.

''Spot USD/INR is expected to find support between 82.25 to 81.90, while the recent swing high of 82.86 remains the biggest hurdle to cross,'' said Dilip Parmar, Research Analyst, HDFC Securities.

On the domestic equity market front, the 30-share BSE Sensex advanced 99.08 points or 0.16 per cent to end at 62,724.71 points, and the broader NSE Nifty rose 38.10 points or 0.21 per cent to 18,601.50 points. According to Jateen Trivedi, VP Research Analyst at LKP Securities, market participants are eagerly awaiting cues from the upcoming US CPI and interest rate decision scheduled for Wednesday.

''The current range is expected to persist until the decision is announced. While capital markets remained range bound, there was buying activity observed from DII's in India-focused sectors, which supported the rupee to stay above the 82.45 level throughout the day,'' Trivedi said.