The Indian rupee gained against the dollar in early trades on Monday, 11 February 2019, rising for the fifth straight day, on increased selling of the American currency by exporters amid foreign fund inflows. Weakness in the dollar against some other currencies overseas and foreign capital inflows in the domestic equity markets supported the rupee, but a lower opening of the domestic equity market capped the gains.
The domestic currency opened at Rs 71.24 against the dollar and registered an intraday high and low of 71.16 and 71.2875 respectively so far during the day. In the spot currency market, the Indian unit was last seen trading at 71.22. On Friday, the rupee had ended 14 paise higher at 71.31 against the US dollar.
The Indian stock market is notably lower Monday morning, with investors largely tracking mixed global cues and reacting to quarterly earnings reports. According to provisional exchange data, foreign portfolio investors (FPIs) bought shares worth a net Rs 843.73 crore on net basis on Friday.
The mood is quite cautious due to lingering concerns about global economic slowdown. Investors look ahead to the resumption of Sino-U.S. trade talks later this week. After coming under pressure early in the session, stocks showed a significant recovery over the course of the trading day on Friday. The major averages climbed well off their worst levels of the day before ending the session mixed.
In the local currency market, the US dollar edged up against most other currencies on Monday in Asia as traders await further news on China trade talks. The U.S. dollar index that tracks the greenback against a basket of other currencies last traded, up 0.1%. The index, widely considered a safe-haven asset, gained 1.2% last week on worries about a weakening global economy and increasing uncertainties surrounding the U.S.-China trade war. It was the currencys biggest weekly increase since May 2018.