The rupee started the new year on a weak note, depreciating by 6 paise to 83.22 against the US dollar amid a muted trend in domestic equities and dollar demand from importers.
Forex traders said the rupee traded in a narrow range in the absence of global cues. Global crude oil markets were closed for New Year Day holiday. At the interbank foreign exchange market, the local unit opened at 83.18 and finally settled at 83.22 (provisional) against the dollar, down by 6 paise from its previous close.
On Friday, the rupee appreciated 4 paise to settle at 83.16 against the US dollar on the last trading day of 2023. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.05 per cent up at 101.38.
On the domestic equity market front, Sensex advanced 31.68 points, or 0.04 per cent, to settle at 72,271.94 points. The Nifty advanced 10.50 points, or 0.05 per cent, to 21,741.90 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on December 29 as they purchased shares worth Rs 1,459.12 crore, according to exchange data.
The forex reserves continued to rise for the third consecutive week, adding USD 4.471 billion more in the week ending December 22, taking the total to USD 620.441 billion, according to the weekly data released by the Reserve Bank on Friday. In the previous reporting week, the kitty had swollen by USD 9.112 billion to USD 615.971 billion, making the quantum of increase one of the highest in a week. In the week before, the overall reserves had risen by USD 2.816 billion to USD 606.859 billion.