The Indian rupee inched up on Monday, helped by dollar inflows accumulated over the weekend, but gains were muted on worries about a slowdown in foreign investment in the stock market and rising crude oil prices. The local currency finished at 43.7550/7650 per dollar, up from Thursday's close of 43.80/81. The market was closed on Friday for a local holiday.
"There was some demand for dollars perhaps to meet month-end obligations which capped gains," said a dealer at a foreign bank. "If the dollar weakens overseas, we could see the rupee gain tomorrow. But concerns about the falling stock market and crude oil are mounting."
Prices of crude oil, India's biggest import item, climbed within a dollar of $50 a barrel on Monday as a blizzard enveloped the US Northeast, boosting demand for heating oil.
Uncertainty ahead of Iraq's elections and Opec's ministerial meeting - both on Sunday - bolstered prices, encouraging speculative hedge funds to rebuild long positions gradually.
Comments
Comments are closed.