Mumbai: The rupee plunged 23 paise to close at a five-month low of 86.78 against the US dollar on Monday amid a strengthening dollar and volatile crude oil prices following the US strike on Iran’s nuclear facilities. A sharp decline in the domestic equity markets further pressured the rupee, according to forex experts.
However, strong FII inflows, along with a rise in the country’s forex reserves prevented further losses in the rupee, they said.
At the interbank foreign exchange the rupee opened at 86.75 against the greenback and traded in the range of 87.67 to 86.85 before settling at its five-month low of 86.78, down 23 paise from its previous close of 86.55 on Friday.
The rupee had closed at 86.70 against the dollar on January 13.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.60 per cent higher at 99.29.
“The range of rupee is expected to be 86.50-86.90, depending on how oil prices behave,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. The latest weekly data released by the RBI on Friday showed India’s forex reserves rising $2.294 billion to $698.95 billion during the week ended
June 13.