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The rupee depreciated 10 paise to 83.50 against the U.S. dollar in early trade on June 10, largely due to the rise in the dollar index and US yields.

Forex traders said uncertainty among market players was down as Narendra Modi was sworn in as Prime Minister on Sunday for a record-equalling third term. However, the strength of the American currency in the international market weighed on the local unit.

At the interbank foreign exchange market, the local unit opened at 83.48 and lost further ground to trade at 83.50 against the greenback, registering a loss of 10 paise from its previous closing level.

On Friday, the rupee appreciated 13 paise to 83.40 against the U.S. dollar.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, the rupee opened at 83.50 largely due to the rise in the dollar index and U.S. yields.

“The Reserve Bank of India (RBI) should be present protecting the rupee as existing policies of the government will continue with largely the same cabinet as in Modi-2.0,” Mr. Bhansali said.

PM Modi will be heading a 72-member Union Council of Ministers putting emphasis on continuity, youth and experience, while also rewarding partners in the BJP-led National Democratic Alliance (NDA) government.

Along with PM Modi, senior BJP leaders including Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman and S. Jaishankar, all ministers in the Modi 2.0 Cabinet, took oath as Cabinet ministers at the Rashtrapati Bhavan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.18, higher by 0.29%.

Brent crude futures, the global oil benchmark, advanced 0.31% to $79.87 per barrel.

On the domestic equity market, both benchmark indices, Sensex and Nifty, scaled record high levels in initial trade. The 30-share BSE Sensex was trading 292.08 points, or 0.38% higher at 76,985.44 points. The broader NSE Nifty was trading at 23,291.50 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹4,391.02 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped $4.837 billion to a new all-time high of $651.51 billion for the week ended May 31, the RBI said on Friday.

In the previous reporting week, the overall reserves had dropped $2.027 billion to $646.673 billion.

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The rupee rebounded from its all-time low levels and appreciated 12 paise to 83.49 against the U.S. dollar in early trade on April 18, supported by a firm trend in domestic equities and tracking gains in Asian currencies.

Forex traders said the local unit gained ground as the American currency retreated from its elevated levels.

At the interbank foreign exchange market, the local unit opened at 83.51 against the greenback. It later touched 83.49 in initial trade, registering a rise of 12 paise from its previous close.

On Tuesday, the rupee plunged 17 paise to hit its lowest level of 83.61 against the U.S. dollar for the second time in four weeks.

Forex and money markets were closed on Wednesday on account of ‘Ram Navami’.

The Indian rupee which closed at record lows on Tuesday opened around 83.51 this morning as Asian currencies gained a bit against the dollar, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

The rupee is likely to trade in the range of 83.45 to 83.65 as FPIs and oil companies buy dollars while RBI sells the American currency as it did on Tuesday when it might have intervened by $2 billion, Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.88, lower by 0.07%.

The dollar took a breather as traders assessed U.S. interest rates outlook in the wake of comments from Federal Reserve officials that cemented expectations of monetary settings being restrictive for longer, Mr. Bhansali added.

Brent crude futures, the global oil benchmark, rose 0.33% to $87.58 per barrel.

On the domestic equity market front, the 30-share BSE Sensex climbed 226.69 points or 0.31% to 73,170.37 in early trade. The NSE Nifty advanced 89.05 points or 0.45 to 22,236.95.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹4,468.09 crore, according to exchange data.

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The rupee pared initial gains and settled 3 paise lower at 83.27 against the U.S. dollar on October 5, following a recovery in the American currency.

Forex traders said the rupee consolidated in a narrow range as investors preferred to stay on the sidelines ahead of the Reserve Bank of India’s rate decision.

At the interbank foreign exchange market, the rupee opened at 83.21 against the greenback and touched an intra-day low of 83.30 and a high of 83.16. It finally settled at 83.27, down 3 paise over its previous close of 83.24.

“The Indian rupee erased opening gains following recovery in the greenback but ended almost steady ahead of the U.S. weekly jobless data and the RBI’s rate decision,” said Dilip Parmar, Research Analyst, HDFC Securities.

Mr. Parmar said the rupee was well supported by lower crude oil prices, the central bank’s dollar supply and recovery in the domestic equity markets.

“Spot USDINR is expected to trade between 83.10 to 83.35 with the trend remaining sideways to bullish,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 106.79.

Global oil benchmark Brent crude futures dipped 0.97% to $84.98 per barrel.

On the domestic equity market front, the 30-share BSE Sensex ended 405.53 points, or 0.62%t, higher at 65,631.57, while the broader NSE Nifty advanced 109.65 points, or 0.56%, to 19,545.75.

Foreign institutional investors remained net sellers in the capital market on Wednesday, offloading shares worth ₹4,424.02 crore, as per stock exchange data.

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The rupee appreciated 14 paise to settle at 83.05 (provisional) against the U.S. dollar on September 29, boosted by a firm trend in equity markets and a sharp correction in the greenback against major rivals overseas.

However, selling pressure from foreign equity investors and rising crude oil prices in international markets weighed on the domestic unit, forex traders said.

The rupee opened strong at 83.13 against the U.S. dollar and moved in the range of 83.03 to 83.13 against the greenback. It finally settled at 83.05 (provisional), registering a gain of 14 paise from its previous close.

On Thursday, the rupee settled 3 paise higher at 83.19

.Analysts said the rupee also strengthened due to a significant decline in India’s current account deficit (CAD). However, rising interest rates and U.S. bond yields prompted foreign investors to stay in selling mode.

CAD almost halved to $9.2 billion, or 1.1%, of GDP in the first quarter of the current fiscal from $17.9 billion (2.1% of GDP) a year ago, the Reserve Bank of India said on Thursday

.Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: “Indian rupee strengthened on Friday on weak U.S. dollar index and a decline in crude oil prices. Positive tone in domestic markets also strengthened the rupee. However, FII outflows capped sharp gains.”

The dollar declined on concerns over looming U.S. government shutdown fears. Disappointing economic data from the U.S. also weighed on the greenback, he added.

“We expect the rupee to trade with a slight positive bias on as U.S. government shutdown worries may keep the dollar pressure. Recovery in global markets may also support the local currency.

“However, expectations of recovery in crude oil prices and selling pressure from foreign investors may weigh on the rupee,” Mr. Choudhary said, adding “Traders may also take cues from India’s fiscal deficit data. $/₹ spot price is expected to trade in a range of ₹82.70 to ₹83.40”

.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined by 0.52% to 105.68.

Brent crude, the global oil benchmark, was trading 0.36% higher at $95.72 per barrel.

On the domestic equity front, the 30-share BSE Sensex jumped 320.09 points or 0.49% to settle at 65,828.41. The broader Nifty climbed 114.75 points or 0.59% to end at 19,638.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹3,364.22 crore, according to exchange data.