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Foreign fund outflows and losses in local equities, however, restricted the rupee's gains, forex dealers said.
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As per the data, reserve assets accounted for 64.2 per cent of India's international financial assets at the end of the June quarter.
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The rupee opened flat at 83.22 against the US dollar and later moved in a range of 83.25 to 83.20 in morning deals. It was trading at 83.21 to US dollar at 9.35 am, up by 1 paisa over the previous close.
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Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05 per cent to 106.28.
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Weak sentiment in the global equity markets and surging crude oil prices also weighed on the Indian currency, forex traders said.
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Besides, weak equity market sentiment and elevated levels of crude oil prices -- hovering above USD 92 a barrel -- weighed on the domestic currency, forex traders said
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The rupee continued its downward movement for the second straight day and fell by 8 paise to 83.21 against the US dollar
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The rupee depreciated by 16 paise to 83.10 against the US dollar in early trade on Monday
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The rupee appreciated by 38 paise to 82.75 against the US dollar in early trade on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment
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The rupee was also impacted by a rising dollar index, following hawkish comments from US Federal Reserve officials, forex traders said
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Market participants are in a wait-and-watch mode ahead of the Bank of England and Bank of Japan policy decision, he said.
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"The Indian rupee faced pressure due to an advancing dollar index, driven by hawkish remarks from Federal Reserve officials, according to forex traders."
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Halting its four-session losing streak at the interbank foreign exchange, the domestic unit opened strong at 83.22 against the dollar and traded in the range of 83.27-83.06 against the greenback
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However, a sell-off in the domestic equity markets and a strong American currency against major rivals overseas restricted the rupee's rise, traders said.
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Besides, a strong American currency against key rivals overseas and a negative trend in domestic equities weighed on investor sentiments
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The rupee witnessed range-bound trading against the US dollar in early trade on Friday
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The rupee appreciated 8 paise to 82.93 against the US dollar in early trade on Thursday tracking positive domestic equities
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The rupee appreciated by 10 paise to 82.93 against the US dollar in early trade on Tuesday tracking a positive trend
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A weak American currency against major rivals overseas, however, supported the domestic unit and restricted the fall
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The rupee continued its upward trend for the second straight session and appreciated by 9 paise to 82.93 against the US dollar in early trade on Monday