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| Photo Credit: Reuters

Rupee appreciated 10 paise to 83.80 against the U.S. dollar in morning trade on Monday (August 26, 2024), supported by the weakening of the American currency in the overseas market and foreign fund inflows.

Forex traders said the dollar index lost significant ground and is hovering around the 100.60 level following US Fed Chair Jerome Powell’s recent speech at the Jackson Hole meeting, where he said that time has come for loosening of policy, indicating possible US rate cuts in September.

At the interbank foreign exchange market, the local unit opened at 83.83 and then gained ground and touched 83.80, registering a rise of 10 paise from its previous close.

On Friday, the rupee traded in a narrow range and settled higher by 3 paise at 83.90 against the American currency.

Rupee opened on a positive note and was hovering around 83.80 this morning as the U.S. dollar has lost against most currencies, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

“It is expected to be in a range of 83.75/95 with the Reserve Bank buying dollars at lower levels of the pair and selling near 83.95,” Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.06% to 100.66 points.

Brent crude, the global oil benchmark, was 0.63% up at $79.52 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex gained 262.21 points, or 0.32%, to 81,348.42 points, while the Nifty rose by 62.15 points, or 0.25%, to 24,885.30 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹1,944.48 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped by $4.546 billion to $674.664 billion during the week ended August 16, the RBI said on Friday. In the previous week, the forex kitty had dropped by $4.8 billion to $670.119 billion.

 On Monday, the rupee slumped 37 paise to settle at an all-time low of 84.09 against the U.S. dollar
| Photo Credit: Reuters

The rupee recovered from its all-time low level and opened 25 paise higher at 83.84 against the U.S. dollar in morning trade on August 6, mirroring the rebound in the domestic equity market, even as aggressive dollar bids from foreign banks exerted pressure on the local unit.

Forex traders said risk aversion in the global markets, escalation of geopolitical tensions in the Middle East and outflows by foreign investors further dented investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.92 and then touched an early high of 83.84, registering a 25 paise gain from its all-time closing low of 84.09 against the American currency.

On Monday, the rupee slumped 37 paise to settle at an all-time low of 84.09 against the U.S. dollar.

“The rupee is being sold off in good times and bad times indicating the demand for US dollar as foreign portfolio investors exit the Indian equity market on high valuation concerns,” 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, gained 0.16% to 102.85 points.

Brent crude, the global oil benchmark, was trading at $77.15 per barrel in futures trade, on fears of spreading Middle East conflict that could hit supplies outweighing fears of a possible US recession that could hurt demand in the world’s biggest oil consumer.

Moreover, Israel and U.S. are bracing for a significant escalation after Iran and Hamas pledged to retaliate against Israel for killings last week of a Hamas Leader, traders said.

In the domestic equity market, the 30-share BSE Sensex rebounded 903.63 points, or 1.15%, to 79,663.03 points, while the Nifty increased by 270.50 points, or 1.12%, to 24,326.10 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹10,073.75 crore, according to exchange data.

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| Photo Credit: Reuters

The rupee depreciated 4 paise to 83.55 against the U.S. dollar in early trade on July 15, tracking the strength of the American currency in the overseas market and elevated crude oil prices.

Forex traders said a positive trend in domestic equities and significant foreign fund inflows supported the rupee and restricted the fall.

At the interbank foreign exchange market, the rupee opened at 83.53 and lost further ground to trade at 83.55 against the greenback in initial deals, registering a fall of 4 paise from its previous closing level.

On Friday, the rupee settled at 83.51 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.21, higher by 0.11%.

Brent crude futures, the global oil benchmark, advanced 0.11% to $85.14 per barrel.

Over the past week, the Indian rupee has remained steady against the dollar, consistently hovering around the 83.50 mark despite a brief weakening of the dollar, driven by changes in the macroeconomic landscape — with US CPI data coming in weaker than expected at 3 per cent leading to the dollar index dipping to 104, CR Forex Advisors MD Amit Pabari said.

“The RBI seems determined to prevent the rupee from depreciating below 83.70. Despite pressure from oil companies due to elevated oil prices, the rupee has maintained its position,” Pabari added.

Moreover, positive economic indicators such as robust growth, stable inflation, a reduced fiscal deficit, record-high RBI FX reserves, and a steady pipeline of inflows all act as supportive factors that should ideally bolster the rupee, he added.

Meanwhile, India’s forex reserves jumped $5.158 billion to $657.155 billion during the week ended July 5, the Reserve Bank of India (RBI) said on Friday.

In the domestic equity market, The BSE Sensex was trading 128.59 points, or 0.16% higher at 80,647.93 points. The broader NSE Nifty advanced 50.50 points, or 0.21%, to 24,552.65 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹4,021.60 crore, according to exchange data.

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| Photo Credit: K. Pichumani

The rupee consolidated in a narrow range and settled for the day higher by 1 paisa at 83.30 against the U.S. dollar on April 24, as the support from positive domestic equities was negated by rising American currency.

Forex traders said elevated crude oil prices and significant foreign fund outflows in the international market dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.29 against the greenback. The unit hit an intra-day high of 83.26 and a low of 83.33 against the greenback.

The domestic unit finally settled at 83.30 (provisional) against the dollar, 1 paisa higher from its previous close.

On Tuesday, the rupee closed at 83.31 against the American currency.

Forex traders said the rupee is expected to trade with a slight positive bias on improved global risk sentiments and easing of geopolitical tensions in the Middle East. However, any fresh aggressions in the Middle East may cap gains for the local unit.

Brent crude futures, the global oil benchmark, fell 0.34% to $88.12 per barrel.

“Geopolitical risks in the Middle East and talks of fresh energy sanctions on Iran could see some occasional hiccups in prices to move higher but we don’t expect prices to sustain USD 85 for a short duration,” said Mohammed Imran – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.84, higher by 0.16%.

“We expect the rupee to trade with a slight positive bias on rise in risk appetite in global markets and easing geopolitical tensions in the Middle East. However, hawkish comments from the Fed may support the dollar at lower levels,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

However, any fresh aggressions in the Middle East may cap sharp upside. Traders may take cues from durable goods orders data from the US. Investors may remain cautious ahead of inflation data later this week. USD-INR spot price is expected to trade in a range of Rs 83.05 to Rs 83.50, Choudhary added.

On the domestic equity market front, Sensex advanced 114.49 points, or 0.16%, to settle at 73,852.94 points. The Nifty rose 34.40 points, or 0.15%, to close at 22,402.40 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹3,044.54 crore, according to exchange data.

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| Photo Credit: Reuters

The rupee depreciated 14 paise to close at 83.57 (provisional) against the U.S. dollar on April 16, weighed down by a negative trend in domestic equities and a strong greenback against major crosses overseas amid geopolitical tensions.

Forex traders said a weak appetite for riskier assets and recent foreign capital outflows also dragged down the local unit.

At the interbank foreign exchange market, the local unit opened at 83.51 and finally settled at 83.57 (provisional), registering a loss of 14 paise from its previous close.

On Monday, the rupee declined 6 paise to settle at 83.44 against the US dollar.

According to Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, the 10-year US bond yields rose to 4.66 per cent, the highest since November 2023. Weak domestic markets and simmering geopolitical tensions too weighed on the rupee.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 106.23.

The U.S. dollar rose to a five-month high, following weak yuan, retail sales and safe-haven demand amid Iran-Israel tensions, Choudhary added.

Brent crude futures, the global oil benchmark, declined 0.40 per cent to USD 89.74 per barrel.

“We expect the rupee to remain weak amid ongoing geopolitical uncertainties which could impact risk currencies and a surge in the US dollar. Rising global crude oil prices and a surge in US treasury yields amid expectations of a delay in rate cut in the US may also pressurise the rupee. Markets will take cues from Israel’s response to the attack by Iran.

“Any further escalation would strengthen the dollar, while any signs of de-escalation would lead to some easing. Traders may take cues from building permits; housing starts and industrial production data from the US. USD/INR spot price is expected to trade in a range of Rs 83.30 to Rs 83.80,” Choudhary added.

On the domestic equity market front, Sensex declined 456.10 points, or 0.62%, to settle at 72,943.68 points. The Nifty fell 124.60 points, or 0.56%, to close at 22,147.90 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 3,268.00 crore, according to exchange data.

On the macroeconomic front, wholesale inflation in the country rose marginally to a three-month high of 0.53% in March compared to 0.20% in the preceding month due to an increase in prices of vegetables, potatoes, onion, and crude oil.

Moreover, India’s merchandise exports dipped marginally in March to $41.69 billion, and by 3.11% during the last fiscal year to $437.06 billion, mainly due to continued geopolitical turmoil, and depressed global trade.