At the interbank currency exchange, the domestic currency opened at 83.72, 1 paisa higher than the previous day’s close.
| Photo Credit: Reuters

The rupee rose 2 paise to 83.71 against the U.S. currency in early trade on July 31 following a marginal dip in the dollar in overseas markets.

At the interbank currency exchange, the domestic currency opened at 83.72, 1 paisa higher than the previous day’s close.

The domestic unit moved in the tight range of 83.70-83.72 in early trade.

Forex traders said the rise in Brent crude oil prices offset the rupee’s gains following the decline in dollar rates overseas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.19% to 104.36.

Brent crude futures—the global oil benchmark—rose 1.49% to USD 79.80 per barrel.

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In the domestic equity market, the 30-share BSE Sensex showed volatility, rising over 200 points in early trade to reach a record high before trading at 81,517.75, up 62.35 points, at 9.35 a.m.

“Foreign institutional investors were net sellers in the capital markets on July 30, offloaded shares worth ₹5,598.64 crore,” according to exchange data.

In the domestic equity market, the 30-share BSE Sensex hit an all-time high, rising 355.7 points or 0.44%, to 81,688.42 in early trade on July 29.
| Photo Credit: Reuters

The rupee appreciated by 2 paise to trade at 83.72 against the U.S. dollar in the early session on July 29 amid a weak dollar in the overseas markets.

At the interbank foreign exchange market, the rupee opened firm at 83.70 against the U.S. dollar. The local currency moved in a tight range of 83.70 to 83.72 in early trade.

The rupee was trading at 83.72 against the U.S. dollar at 9.30 a.m.

“Foreign fund outflows from Indian equities after the Government’s decision to hike the tax rate on capital gains weighed on the local currency and restricted the up move,” Forex traders said.

The domestic currency had recovered from its all-time low by 5 paise to settle at 83.73 against the U.S. dollar on July 26, on the strength in domestic markets and expectations of fresh foreign inflows.

In the domestic equity market, the 30-share BSE Sensex hit an all-time high, rising 355.7 points or 0.44%, to 81,688.42 in early trade on July 29.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.23, marginally down by 0.08%. Brent crude futures — the global oil benchmark — rose 0.24, or 0.3 %, to USD 81.37 per barrel.

“India’s forex reserves had jumped USD 4 billion to reach an all-time high of USD 670.857 billion for the week ended on July 19,” according to the Reserve Bank data released on July 26.

“Foreign institutional investors (FIIs) were net buyers in the capital markets on July 26 as they purchased shares worth ₹2,546.38 crore,” according to exchange data.

Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi.
| Photo Credit: REUTERS

The rupee traded in a narrow range and appreciated 2 paise to 83.49 against the U.S. dollar in early trade on July 11, as a positive trend in domestic equities supported the local unit, while elevated crude oil prices weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.49, registering a rise of 2 paise from its previous close.

On July 10, the rupee stayed range-bound and settled 2 paise lower at 83.51 against the U.S. dollar.

“Persistent demand for the dollar from local importers has capped the rupee’s potential gains, yet its outlook remains optimistic, buoyed by recent positive economic indicators,” CR Forex Advisors MD-Amit Pabari said.

Mr. Pabari further said the rupee’s outlook is supported by strong foreign inflows, a positive economic forecast, and India’s impressive macroeconomic growth, currently the fastest among large economies.

The Reserve Bank of India (RBI) appears determined to prevent the rupee from depreciating below 83.70, despite pressure from oil companies due to elevated oil prices, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.93, lower by 0.11 per cent.

Brent crude futures, the global oil benchmark, advanced 0.76 per cent to USD 85.73 per barrel.

On the domestic equity market front, the 30-share BSE Sensex rose 105.32 points, or 0.13 per cent, to 80,030.09 points. The broader NSE Nifty advanced 21.60 points, or 0.09 per cent, to 24,346.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 583.96 crore, according to exchange data.