Rupee slips 13 paise to 82.80 per dollar

The rupee fell 13 paise to 82.80 against the US dollar in early trade on Monday, as the central bank announced the withdrawal of the biggest denomination currency note from circulation. The domestic unit plummeted to 82.80 in early activity on the interbank foreign exchange, a 13-paise drop from its previous close. The rupee closed at 82.67 per dollar on Friday. According to Sriram Iyer, Senior Research Analyst – Commodities & Currencies Reliance Securities Limited, traders would also examine the impact of liquidity following the RBI’s withdrawal of the biggest denomination currency note from circulation. Furthermore, worries have surfaced regarding the debt-ceiling negotiations, and a prospective default might harm the US economy and, ultimately, domestic sentiment. The Reserve Bank of India (RBI) made the unexpected move on Friday, but granted the public until September 30 to deposit Rs 2,000 notes in accounts or exchange them at banks. It stated that it had directed banks to cease issuing Rs 2,000 notes with immediate effect. However, markets may find support because the dollar was mildly weaker on Monday as a result of slightly less aggressive Jerome Powell’s comments on rates, according to Iyer. The dollar index, which measures the strength of the US currency against a basket of six currencies, declined 0.14 percent to 103.04. Brent crude futures increased 0.87 percent to USD 74.92 per barrel, the global oil benchmark. The 30-share BSE Sensex was trading 254.67 points, or 0.41 percent, higher at 61,984.35 in the domestic equity market. The NSE Nifty fell 86.50 points, or 0.48 percent, to 18,289.90. According to exchange data, foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth Rs 113.46 crore. Meanwhile, India’s foreign reserves increased for the second consecutive week, climbing USD 3.553 billion to USD 599.529 billion for the week ended May 12, according to the Reserve Bank of India on Friday. For the previous week, total reserves increased by USD 7.196 billion to USD 595.976 billion.