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The rupee appreciated 8 paise to 83.37 against the U.S. dollar in early trade on June 28, supported by a positive trend in domestic equities and foreign fund inflows.

Forex traders said the strength of the American currency in the overseas market and elevated crude oil prices weighed on the local unit and restricted the appreciation bias.

At the interbank foreign exchange market, the local unit opened at 83.42 and gained further ground to trade at 83.37 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level.

On Thursday, the rupee appreciated 12 paise to settle at 83.45 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.15% at 106.06, ahead of the crucial U.S. inflation reading this evening.

Brent crude futures, the global oil benchmark, were trading 0.47% higher at $86.80 per barrel, as fears of supply disruptions from Russia and the Middle East on continued war offset slowing demand.

On Thursday, there were good inflows taking the rupee higher from Wednesday’s closing level, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

“Inflows are expected on Friday as well, it being the month-end and quarter-end and could take the rupee higher towards 83.35. Exporters may wait to sell while importers may buy the dips,” Mr. Bhansali added.

In the domestic equity market, the 30-share BSE Sensex advanced 347.48 points, or 0.44%, to 79,590.66 points. The broader NSE Nifty rose 114.55 points, or 114.55%, to 24,159.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth ₹7,658.77 crore, according to exchange data.

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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 appreciated by 3 paise to 83.10 against the U.S. dollar on May 28, tracking a positive trend in domestic equities and weakness of the American currency in the overseas market.

Forex traders rupee is likely to trade with a positive bias tracking a positive trend in domestic equities and expectations of fresh foreign inflows, however, a recovery in crude oil prices may cap a sharp upside.

At the interbank foreign exchange market, the local unit opened at 83.14 and gained further ground to trade at 83.10 against the greenback, registering a gain of 3 paise from its previous closing level.

On Monday, the rupee pared its initial gains and settled for the day lower by 3 paise at 83.13 against the U.S. dollar.

The opening for the rupee on Tuesday was flattish and the $/₹ pair should move within a narrow range of 83.00 to 83.20, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Importers need to keep buying in dips, as the Reserve Bank of India (RBI) may possibly not allow a big move downside for the pair, Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.42, lower by 0.12%.

Brent crude futures, the global oil benchmark, advanced 0.24% to $83.30 per barrel.

Going ahead, “the performance of Indian equities is expected to be a significant driver for the rupee, especially as investors position themselves ahead of the Lok Sabha election results scheduled for June 4,” said CR Forex Advisors MD Amit Pabari.

Given these factors, the rupee is expected to appreciate to around 82.80–82.50 in the near term, with medium-term projections ranging between 82.20 and 82.00, Mr. Pabari added.

On the domestic equity market, the 30-share BSE Sensex was trading 124.2 points, or 0.16% higher at 75,514.70 points. The broader NSE Nifty rose 47.95 points or 0.21% to 22,980.40 points in initial trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹541.22 crore, according to exchange data.

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The rupee appreciated by 12 paise to 83.17 against the U.S. dollar on May 24, tracking a bullish trend in domestic equities, wherein benchmark indices scaled new peaks.

Forex traders attributed the rally to ₹2.11 lakh crore record dividend by the RBI to the government for the fiscal ended March 31. It was more than double the budgeted expectation, helping shore up revenue ahead of a new government taking office.

At the interbank foreign exchange market, the local unit opened at 83.26 and gained further ground to trade at 83.17 against the greenback, registering a gain of 12 paise from its previous closing level.

The forex market was closed on Thursday on account of ‘Buddha Purnima’.

On Wednesday, the rupee appreciated by 2 paise to settle at 83.29 against the U.S. dollar.

After a trading holiday on Thursday, the Indian rupee was on a strong footing following a big transfer of ₹2.11 lakh crore in the form of dividend from the Reserve Bank of India (RBI) to the Union government, which would improve not only government finances but also allow leverage to spend more on infrastructure, said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.11, higher by 0.01%.

Brent crude futures, the global oil benchmark, advanced 0.05% to $81.40 per barrel.

“The overall outlook for the rupee appears strongly positive, with the Nifty 50 reaching an all-time high. These factors indicate that India remains a focal point for investors, with potential for the rupee to appreciate.

“In the short term, the rupee is expected to approach levels of 83.00 to 83.10, while the medium-term target is projected to range between 82.80 and 82.50,” CR Forex Advisors MD Amit Pabari said.

On the domestic equity market, both the benchmark indices scaled new peaks. The 30-share BSE Sensex was trading 51.21 points, or 0.07% higher at 75,469.25 points. The broader NSE Nifty breached the 23,000 level in initial trade.

Moreover, the market capitalisation of listed companies on the NSE surpassed $5 trillion (Rs 416.57 trillion) on Thursday on a day when the Nifty 50 index touched an all-time high of 22,993.60.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth ₹Rs 4,670.95 crore, according to exchange data.

A currency trader is pictured through the symbol for the Indian Rupee on the floor of a trading firm in Mumbai. Image for representation
| Photo Credit: REUTERS

The rupee appreciated by 6 paise to 83.31 against the U.S. dollar on Tuesday amid softening crude oil prices in the international market.

Forex traders said, however, the local unit faced some resistance due to subdued sentiment in the domestic equity market and a stronger American currency.

At the interbank foreign exchange market, the local unit opened strong at 83.32 and inched up further to trade at 83.31 against the greenback, registering a gain of 6 paise from its previous closing level.

On Friday, the rupee had settled 13 paise higher at 83.37 against the U.S. dollar. The forex markets were closed on Monday on account of general elections.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.57, higher by 0.11%.

Analysts attributed the strengthening dollar to higher U.S. treasury yields even as the Federal Reserve has indicated that it needs more time to assess the progress on inflation.

Brent crude futures, the global oil benchmark, declined 0.54% to $83.26 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 71.18 points, or 0.10% lower at 73,934.76 points. The broader NSE Nifty was down 12.00 points, or 0.05%, to 22,490.00 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets during a special trading session on Saturday, as they offloaded shares worth ₹92.95 crore, according to exchange data.

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The rupee appreciated 3 paise to 83.42 against the U.S. dollar in early trade on May 6, supported by a firm trend in domestic equities.

Forex traders said the strength of the American currency in the overseas market 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 83.43 against the greenback. It later touched 83.42 in initial trade, registering a rise of 3 paise from its previous close.

On Friday, the rupee inched up 1 paisa to settle at 83.45 against the U.S. dollar.

Indian rupee has not been able to make a dent against the dollar as FPIs and oil companies continue to buy U.S. dollars and ensure it remains range bound, as RBI protects it from depreciation beyond 83.50, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.16, higher by 0.13%.

“The dollar was broadly steady as a soft U.S. jobs report boosted traders that the U.S. may still cut rates twice in 2024,” Mr. Bhansali said.

Brent crude futures, the global oil benchmark, rose 0.23% to $83.15 per barrel.

On the domestic equity market front, the 30-share BSE Sensex climbed 434.04 points or 0.59% to 74,312.19 in early trade. The NSE Nifty advanced 91.60 points or 0.41% to 22,567.45 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth ₹2,391.98 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped $2.412 billion to $637.922 billion as on April 26, in the third consecutive weekly decline in the reserves, the Reserve Bank of India (RBI) said on Friday.

In the previous reporting week, the overall reserves had declined $2.28 billion to $640.33 billion.

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The rupee depreciated 3 paise to 83.48 against the U.S. dollar in early trade on April 30 amid a strong American currency against major Asian rivals and an upward movement in the crude oil prices.

However, positive sentiment in the domestic equity markets and some inflow of foreign capital in the Indian equities capped the fall in the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.46 against the greenback and then slipped further to 83.48, registering a loss of 3 paise compared to its previous closing level.

On Monday, the rupee had settled 7 paise lower at 83.45 against the U.S. dollar.

Gaurang Somaiya, Forex and bullion analyst, Motilal Oswal Financial Services Ltd, said the rupee weakened amidst rising concerns that the U.S. Federal Reserve could delay interest rate cuts as the country’s inflation stayed above the Central bank’s 2% target.

“U.S. economy remains resilient and with a hawkish stance from the Fed, the dollar remains well supported at lower levels,” he said, adding that the USD-INR (Spot) is expected “to trade sideways with positive bias in a range of 83.20-83.50”.

The Federal Open Market Committee (FOMC) meeting begins on Tuesday and the interest rate decision is expected to be announced on Wednesday.

Besides, market participants are expected to take cues from the U.S. consumer confidence index to be announced on Tuesday and the domestic manufacturing PMI data on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.27% to 105.73.

Brent crude futures, the global oil benchmark, inched up 0.06% to $88.45 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 135.59 points or 0.18% higher at 74,806.87. The broader NSE Nifty advanced 47.65 points or 0.21% to 22,691.05.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹169.09 crore on a net basis, according to exchange data.

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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 appreciated by 9 paise to 83.19 against the U.S. dollar in early trade on November 2, tracking its Asian peers as risk-on sentiments prevailed in the market as the U.S. Fed was a bit dovish in its policy meeting.

A weak U.S. dollar overseas and positive domestic equities supported the local unit in early trade, forex traders said.

The U.S. Fed kept interest rates on hold, and its chairman looked content with the economy’s soft landing. Following the decision, the dollar index softened, and the 10-year bond yield fell to 4.70.

At the interbank foreign exchange, the domestic unit opened at 83.23 against the dollar and then touched an early high of 83.19, registering a gain of 9 paise over its previous close.

On Wednesday, the rupee settled at 83.28 against the U.S. dollar. The local unit hit all-time low level of 83.35 against the American currency during intra-day.

“Asian currencies all gained against the dollar after the dovish FED as risk-on sentiments prevailed in the market. Brent oil rose slightly to $85.45 per barrel,” said Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP.

Mr. Bhansali noted that the rupee made a new closing low of 83.29/30 on demand from importers, FPI outflows and ECB redemptions.

“However, today’s opening is higher at 83.22 as FED was a bit dovish in its policy meeting,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.51% lower at 106.34.

Brent crude futures, the global oil benchmark, rose 1.05% to $85.52 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 568.23 points or 0.89% higher at 64,159.56. The broader NSE Nifty advanced 155.80 points or 0.82% to 19,144.95.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹1,816.91 crore, according to exchange data.

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The rupee fell 2 paise to settle at 83.26 (provisional) against the U.S. dollar on surging crude oil prices overseas and a downward trend in the domestic equities.

Forex traders said that positive macroeconomic data failed to rev up the local currency, which has been under pressure due to the elevated level of the dollar and sustained withdrawal of foreign funds.

Also read | Rupee trades flat at 83.24 against U.S. dollar in early trade

At the interbank foreign exchange, the rupee opened at 83.25 and traded in a narrow range before settling at 83.26 (provisional) against the greenback, 2 paise lower from its Thursday closing level.

According to the government data released on Thursday, India’s retail inflation moderated to a three-month low of 5% in September while factory output in August soared to a 14-month high of 10.4%.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07% lower at 106.52.

Analysts said that the dollar index remained elevated above 106 after the U.S. data showed the country’s inflation slightly higher than estimated, raising expectations of further interest rate hikes by the U.S. Federal Reserve.

Brent crude futures, the global oil benchmark, witnessed a sharp rise of 2.97% to $88.55 per barrel.

On the domestic equity market front, the BSE Sensex closed 125.65 points or 0.195 lower at 66,282.74. The broader NSE Nifty declined 42.95 points or 0.225 to 19,751.05.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹1,862.57 crore, as per exchange data.