Rupee appreciated 7 paise to 83.82 against the U.S. dollar. File
| Photo Credit: Reuters

Rupee appreciated 7 paise to 83.82 against the U.S. dollar in morning trade on Friday (August 30, 2024), supported by significant foreign fund inflows and a positive trend in domestic equities.

Forex traders said a rise in global risk sentiments supported the rupee, while recovery in the U.S. dollar and month-end dollar demand from importers and oil marketing companies (OMCs) weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.83, then gained ground to touch 83.82, registering a rise of 7 paise from its previous close.

On Thursday, the rupee appreciated 8 paise to close at 83.89 against the American currency.

According to forex traders, MSCI rebalancing flows could take the rupee higher.

“Some appreciation in the rupee appears likely, with anticipated MSCI inflows of around $3 billion. The rupee is likely to trade within a range of 83.75 to 83.90, while in the medium-term, a range of 83.60 to 84.05 is anticipated, with a bias towards the upside,” CR Forex Advisors MD-Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.03% to 101.37 points.

Brent crude, the international benchmark, gained 0.29 per cent to $80.17 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 227.63 points, or 0.28%, to 82,362.24 points, while the Nifty was up 65.70 points, or 0.26%, to 25,217.65 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth ₹3,259.56 crore, according to exchange data.

Meanwhile, Moody’s Ratings on Thursday raised India’s GDP growth forecast for 2024 and 2025 calendar year to 7.2% and 6.6%, respectively, on strong broad-based growth.

Image used for represnetative purpose only
| Photo Credit: MUSTAFAH KK

The rupee opened on a flat note against the U.S. dollar in early trade on May 17, weighed down by a negative trend in domestic equities and the strength of the American currency in the overseas markets.

Forex traders said the Indian rupee underperformed among the Asian currencies amid higher imported commodity prices and foreign fund outflows amid worries about election results.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.50 against the American currency and touched 83.49 in the initial trade.

On Thursday, the rupee had settled at 83.50 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.61, higher by 0.15%.

Brent crude futures, the global oil benchmark, rose 0.26% to USD 83.49 per barrel.

“Indian rupee was again sold off despite gains in other Asian currencies on Thursday and closed at RBI-controlled level of 83.50,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Bhansali further noted that the rupee is likely to trade in a narrow range of 83.45 to 83.55 during the day.

On the domestic equity market, the 30-share BSE Sensex was trading 196.15 points, or 0.27% lower at 73,467.57 points. The broader NSE Nifty was down 44.00 points, or 0.2%, to 22,359.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth ₹776.49 crore, according to exchange data.

The rupee appreciated 8 paise to 83.44 against the U.S. dollar in early trade on Thursday, as the American currency retreated from its elevated levels.
| Photo Credit: C. Venkatachalapathy

The rupee appreciated 8 paise to 83.44 against the U.S. dollar in early trade on Thursday, as the American currency retreated from its elevated levels.

Forex traders said a negative trend in domestic equities and foreign fund outflows weighed on the local unit and restricted the up move.

At the interbank foreign exchange market, the local unit opened at 83.49 against the greenback. It later touched 83.44 in initial trade, registering a rise of 8 paise from its previous close.

On Wednesday, the rupee stayed range-bound and settled 1 paisa lower at 83.52 against the U.S. dollar.

“Indian rupee was sold against the dollar as FPIs continued to sell stocks worth over ₹6,000 crore on Wednesday and bought dollars keeping US dollar higher,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Dollar buying could reemerge despite U.S. dollar selling by the Reserve Bank of India (RBI) to protect the rupee, Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.51, lower by 0.03%.

“The US FED speakers warned that interest rates could remain higher for longer. More speakers would give their rhetoric on Thursday and Friday. The dollar index was stable at 105.54 while the US 10-year bond yield rose from 4.46% to 4.50%,” Mr. Bhansali said.

Brent crude futures, the global oil benchmark, rose 0.43% to USD 83.94 per barrel.

On the domestic equity market front, the 30-share BSE Sensex declined 176.2 points or 0.24% to 73,290.19 in early trade. The NSE Nifty fell 49.75 points or 0.22% to 22,252.75 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth ₹6,669.10 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee depreciated 5 paise to 83.43 against the U.S. dollar in early trade on April 29 amid a strong American currency overseas and withdrawal of foreign funds from domestic equity markets.

However, positive sentiment in the domestic equity markets and retreating crude oil prices in international markets supported the Indian currency at lower level, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 83.39 against the greenback and then slipped further to 83.43, registering a loss of 5 paise compared to its previous closing level.

On Friday, the rupee had declined 10 paise to close at 83.38 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, increased 0.05% to 105.86.

Analysts attributed the strengthening dollar to the positive global trends amid firm growth in the world’s largest economy, which renewed hope for a reduction in the interest rate by the U.S. Federal Reserve.

Brent crude futures, the global oil benchmark, declined 0.92% to $88.68 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 271.80 points or 0.37% higher at 74,001.96. The broader NSE Nifty advanced 72.45 points or 0.32% to 22,492.40.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹3,408.88 crore, according to exchange data.

The rupee continued its gaining momentum for the second consecutive day and appreciated 7 paise to settle at 83.18 (provisional) against the U.S. dollar on October 11 amid robust buying in domestic equities and a weak American currency overseas.

However, unabated withdrawal of funds by foreign institutional investors weighed on the domestic currency, Forex analysts said.

At the interbank foreign exchange, the rupee opened strong at 83.20 and traded between the intra-day peak of 83.15 and the lowest level of 83.24 against the greenback. The local unit finally settled at 83.18 (provisional), registering a gain of 7 paise from its previous close.

On October 10, the rupee settled 3 paise higher at 83.25 against the U.S. dollar.

According to Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, the rupee is expected to trade with a slight positive bias on the rise in risk appetite in global markets and softness in the U.S. dollar amid dovish comments by U.S. Federal Reserve officials. However, geopolitical uncertainty due to the ongoing Israel-Hamas conflict may cap a sharp upside.

“Any upside reversal in crude oil prices and FII outflows may also weigh on the rupee at higher levels. Traders may remain cautious ahead of PPI data and FOMC minutes from the U.S. today and inflation data from India and the U.S. later this week. USD-INR spot price is expected to trade in a range of ₹82.80 to ₹83.50,” Mr. Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% lower at 105.73.

Brent crude futures, the global oil benchmark, declined 0.65% to $87.08 per barrel.

On the domestic equity market front, the BSE Sensex closed 393.69 points or 0.60% higher at 66,473.05. The broader NSE Nifty climbed 121.50 points or 0.62% to 19,811.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth ₹1,005.49 crore, as per exchange data.

Image for representational purpose only.
| Photo Credit: V.V. Krishnan

The rupee edged up 1 paisa to 83.21 against the U.S. currency in a restricted trade on September 28 amid gains in domestic equities.

The Indian currency was almost trading flat in the early session as gains from firm domestic stocks were offset by a rise in crude oil prices and the U.S. dollar index remaining above the 106-mark against the leading currencies, Forex dealers said.

The rupee opened flat at 83.22 against the U.S. dollar and later moved in a range of 83.25 to 83.20 in morning deals. It was trading at 83.21 to U.S. dollar at 9.35 a.m., up by 1 paisa over the previous close.

The domestic unit settled at 83.22 on September 27 after a listless trade.

It traded in a narrow range on Wednesday despite broader gains in the dollar against its major crosses, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

The hawkish tone in the recent Federal Reserve meeting has been confirmed by Fed officials in recent days, as they flagged the possibility that the central bank would need to raise interest rates further after pausing its rate-hiking cycle last week, he added.

Elevated U.S. yields have spelt trouble for the yen, which slipped to an 11-month low against the U.S. dollar.

“We expect the USD-INR (Spot) to trade sideways and quote in the range of 83.05 and 83.30,” Mr. Somaiya said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was flat at 106.67.

Brent crude, the global oil benchmark, was trading 0.75% higher at $97.27 per barrel.

On the domestic equity market front, the BSE Sensex climbed 287.32 points to 66,406.01 in early trade. Nifty advanced 50.2 points to 19,766.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹354.35 crore, according to exchange data.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee recovered from its all-time low levels and appreciated by 7 paise to 83.02 against the U.S. dollar in early trade on August 18 as the American currency retracted from its elevated levels.

However, a muted trend in domestic equities, foreign fund outflows and rising crude oil prices weighed on the domestic unit, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.03, then touched a high of 83.02 against the American currency, registering a rise of 7 paise over its last close.

In initial trade the rupee also touched a low of 83.09 against the American currency.

On Thursday, the rupee settled for the day lower by 1 paisa at a fresh all-time low of 83.09 against the U.S. dollar.

Forex traders said rupee is likely to trade with a negative bias on risk aversion in global markets and firm U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.26% to 103.30.

Brent crude futures, the global oil benchmark, rose 0.07% to $84.18 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 206.61 points or 0.32% lower at 64,944.41. The broader NSE Nifty declined 67.95 points or 0.35% to 19,297.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹1,510.86 crore, according to exchange data.