In early trading, the Indian rupee depreciates by 6 paise to 83.13 against the US dollar.

During the morning session, the Indian rupee saw a 6-paise decline to 83.13 against the US dollar, influenced by heightened crude oil prices and increased demand for the dollar from importers. Forex traders noted that despite support from positive domestic equities, the rupee is trading within a narrow range, with foreign fund outflows offsetting the positive factors.

At the start of the interbank foreign exchange, the rupee initiated at 83.11 against the dollar, subsequently slipping to 83.13, reflecting a 6 paise decline from its previous close. In early trade, the rupee also reached an initial high of 83.09 against the US dollar.

On the previous day, the rupee concluded at 83.07 against the US dollar.

Simultaneously, global oil benchmark Brent crude futures experienced a marginal decline of 0.03%, settling at $80.04 per barrel.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP noted that Brent oil surpassed $80 per barrel due to supply concerns arising from disruptions in the US and Russia, triggering strong gains. Bhansali added that caution ahead of central bank meetings also contributed to subdued prices. He anticipated that inflows would dominate the session as the Reserve Bank of India (RBI) and oil companies engage in dollar buying to guard against significant rupee gains.

The dollar index, gauging the strength of the greenback against a basket of six currencies, experienced a 0.10% decline, trading at 103.22. In the domestic stock market, the 30-share BSE Sensex displayed a 0.67% increase of 475.55 points to reach 71,899.20 points. The broader NSE Nifty also rose by 0.64%, gaining 137.20 points to reach 21,709.00 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets, offloading shares worth ₹545.58 crore on the previous day.

Moreover, India’s forex reserves witnessed a notable increase of $1.634 billion, reaching $618.937 billion for the week ending January 12, as reported by the Reserve Bank of India (RBI) on Friday. In the previous reporting week, the overall reserves had experienced a significant decline, dropping by $5.89 billion to $617.3 billion.

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