The rupee depreciated by 9 paise to close at 82.71 against the US dollar on Monday, weighed down by a surge in crude oil prices and strength of the American currency in the overseas market.

At the interbank foreign exchange market, the local unit opened at 82.71 against the US dollar and moved in a range of 82.67 to 82.77 in the day trade.

The rupee finally settled at 82.71 against the US dollar, down 9 paise from its previous close.

On Friday, the rupee had settled at 82.62 against the dollar.

“We expect the rupee to trade with a slight negative bias on positive US dollar and rising global crude oil prices. However, rise in risk appetite in global markets on rising expectations of a no rate hike by Fed in its September FOMC may support rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Choudhary further said that “USDINR spot price is expected to trade in a range of Rs 82.40 to Rs 83.” According to Jateen Trivedi, VP Research Analyst at LKP Securities, upward trend in oil prices may exert additional downward pressure on the rupee.

“In terms of rupee movement, a potential trading range is anticipated between 82.55 and 82.85. If the rupee breaches the lower end of this range (82.85), it could potentially experience a sharp decline, with a target level of 83.25 coming into play. Traders and investors should closely monitor both the currency and oil markets for further developments in the coming days,” Trivedi said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.04 percent to 104.19.

Brent crude futures, the global oil benchmark, advanced 0.37 percent to $88.88 per barrel.

On the domestic equity market front, the 30-share BSE Sensex closed 240.98 points or 0.37 percent higher at 65,628.14. The broader NSE Nifty advanced 93.50 points or 0.48 percent to 19,528.80.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 3,367.67 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped by $30 million to $594.858 billion in the week ended August 25, the Reserve Bank said on Friday.

In the previous week, the overall reserves had dropped by $7.273 billion to $594.888 billion.