Rupee Opens Lower After Dollar Index, Oil Prices Rise

The Indian rupee opened weaker on Monday, pressured by a rise in the dollar index and Brent crude oil prices. 

The currency depreciated 2 paise to open at Rs 83.72 against the US dollar, compared to the close of Rs 83.70 on Friday, according to Bloomberg.

Brent crude oil price rose 0.64% to $72.44 per barrel, while the US dollar index edged up 0.06% to 100.4420. 

The dollar strengthened after US economic data showed resilience, easing investor fears of a recession in the world's largest economy. Initial jobless claims fell to a four-month low of 2,18,000, and second quarter GDP grew at an annual rate of 3%, above the consensus estimate of 2.9%. First quarter GDP growth was revised upward to 1.6% from 1.4%, Bloomberg reported.

Additionally, rising crude oil prices are also expected to weigh on the rupee. Oil prices climbed due to deepening supply concerns as key Libyan oilfields were shut down amid political tensions, halting production and exports to around 7,00,000 barrels per day.

"The Indian rupee was expected to open flat this morning as the RBI and oil companies continue to buy the inflows, keeping the rupee steady. Markets are awaiting PMI data from major economies and US non-farm payroll data on the 4th. Fed Chairman Powell will also be speaking this week," said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

The rupee is expected to trade between Rs 83.60 and Rs 83.80 on Monday, according to Bhansali.