The rupee witnessed range-bound trade and settled for the day on a flat note at 83.98 (provisional) against U.S. dollar on Wednesday (September 11, 2024) as the support from the lower level of crude oil prices and soft US dollar was negated by a weak trend in domestic equities.

Forex traders said significant corrections in asset classes like the dollar index and crude oil prices supported the rupee, while a negative trend in domestic equities and concerns over global economic growth capped the upside.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.97 against the American currency and touched an intraday high of 83.93 and a low of 83.98 against the American currency.

The rupee finally settled for the day at 83.98 (provisional) against the U.S. dollar.

On Tuesday, the rupee depreciated 3 paise to close at 83.98 against the American currency.

“Indian rupee continued to remain range-bound stuck in a 83.90-84 range supported by active interventions from RBI at lower levels along with declining crude oil prices also capping the upside in same,” said Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers.

Sharma further noted that rupee’s minimal volatility is also attributed to the Reserve Bank of India (RBI) maintaining long-term interest rate pauses and building record foreign exchange reserves.

“Overall rupee is expected to maintain a trading range of 83.90-84.10 in the week ahead with minimal volatility with cues from US CPI & ECB interest rate decision in coming days to provide further direction to currency pair,” Sharma added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.23% to 101.39 points.

Brent crude, the international benchmark, was trading higher by 2.44% to $70.88 per barrel in futures trade.

Forex traders said crude oil level of $70 per barrel will act as a support for the domestic unit as India, the world’s third-largest oil importer, stands to benefit from cheaper oil.

On the domestic equity market, the 30-share BSE Sensex declined 398.13 points, or 0.49%, to 81,523.16 points, while the Nifty was down 122.65 points, or 0.49%, to 24,918.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth ₹2,208.23 crore, according to exchange data.

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| Photo Credit: Reuters

The rupee gained 2 paise to close at 83.95 (provisional) against the US dollar on Friday (September 6, 2024) amid a weak greenback in overseas markets.

However, negative domestic markets, rise in crude oil prices, and outflow of foreign capital capped sharp gains, forex traders said.

At the interbank currency market, the local unit opened at 83.97 and witnessed an intra-day high of 83.91 against the American currency.

The unit, which traded in the range of 83.91-83.97, finally settled at 83.95 (provisional), registering a gain of 2 paise. It had closed at 83.97 on Tuesday.

“Indian rupee recovered today on weak US dollar. However, weak domestic markets capped sharp gains,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

“We expect rupee to trade with a slight negative bias on weak global equities and concerns over global economic growth,” he said, adding that the USD-INR spot price is expected to trade in a range of ₹83.70 to ₹84.20.

Traders may take cues from non-farm payrolls report and speeches by the US Federal Reserve’s rate-setting panel members, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.14% to 100.96 points.

Brent crude, the international benchmark, gained 0.58% to $73.11 per barrel in futures trade.

In the domestic equity markets, Sensex tanked 1,017.23 points to settle at 81,183.93, while Nifty slumped 292.95 points to 24,852.15.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth ₹688.69 crore, according to exchange data.

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| Photo Credit: Reuters

Rupee declined 3 paise to hit 83.88 against the U.S. dollar in early trade on Monday (September 2, 2024) amid fluctuating crude oil prices.

Forex traders said volatility in the international dollar trade and limited movement in the Brent crude rates contributed to the decline in the domestic currency in early trade.

The positive domestic equity market, inflow of foreign fund and weak greenback capped the rupee’s fall, according to forex traders.

At the interbank foreign exchange market, the local unit opened 2 paise lower at 83.87 against the American currency and inched up to touch Friday’s closing rate of 83.85 before slipping again.

Currency traders are awaiting the PMI manufacturing data set to be released later in the day.

The rupee rose 4 paise on Friday to close at 83.85 against the U.S. currency.

Meanwhile, Sensex and Nifty hit fresh all-time high levels in early trade on Monday. While Sensex rose 164.2 points to 82,527.60, Nifty was up 55.2 points to reach 25,291.10.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, remained flat at 101.69 points.

Brent crude, the international benchmark, declined 0.87% to $76.26 per barrel in futures trade.

“Brent oil extended losses on Monday with investors weighing higher OPEC+ production from October against a sharp drop in output from Libya and sluggish demand from China and the US, the world’s two biggest oil consumers,” Anil Kumar Bhansali Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Gross GST collections in August grew 10 per cent to about ₹1.75 lakh crore on Sunday, reflecting higher domestic consumption.

India’s forex reserves jumped $7.023 billion to touch a new high of $681.688 billion in the week ended August 23, according to the Reserve Bank of India data released on Friday.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹5,318.14 crore, according to exchange data.

Meanwhile, the Centre’s fiscal deficit at the end of the first four months of the current fiscal touched 17.2% of the full-year target, according to data released by the Controller General of Accounts (CGA).

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Rupee depreciated 2 paise to 83.95 against the US dollar in morning trade on Wednesday (August 28, 2024), weighed down by a muted trend in domestic equities.

Forex traders said from a macroeconomic standpoint, the rupee’s downside appears well-contained, with the 84-level acting as a crucial support, likely bolstered by expected RBI intervention to prevent further depreciation.

At the interbank foreign exchange market, the local unit opened at 83.94, then lost further ground and touched 83.95, registering a loss of 2 paise from its previous close.

On Tuesday, the rupee depreciated by 6 paise to close at 83.93 against the American currency.

According to CR Forex Advisors MD Amit Pabari the Reserve Bank’s interventions not only seem to limit the rupee’s downside but also cap its appreciation.

“This was evident earlier in the week when, despite significant dollar weakness, the rupee remained steady, unlike other emerging market currencies that experienced notable gains,” Pabari said.

The rupee is expected to trade within a narrow range in the near term, with an upside limit around 83.80 and solid support near 84.05, with a broader range of 83.60 to 84.05 in the medium term, Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.17 % to 100.72 points.

Brent crude, the international benchmark, gained 0.14% to $79.66 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex fell 43.51 points, or 0.05%, to 81,668.25 points, while the Nifty was down by 21.85 points, or 0.09%, to 24,995.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth Rs 1,503.76 crore, according to exchange data.

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| Photo Credit: Reuters

The rupee depreciated by 5 paise to close at 83.92 (provisional) against the American currency on Tuesday (August 27, 2024), on overnight jump in crude oil prices and a surge in commodity prices.

However, positive domestic markets and a soft US dollar cushioned the downside, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.91 and touched an intra-day low of 83.95 against the U.S. dollar.

The domestic currency finally settled at 83.92 (provisional), 5 paise lower from its previous close.

On Monday, the Indian rupee settled for the day 3 paise higher at 83.87 against the American currency.

“We expect the rupee to trade with a slight positive bias on rise in global risk sentiments amid dovish Fed speak and rising expectations of a rate cut by the Fed in September.

“However, geopolitical tensions in the Middle East and rising crude oil prices may cap sharp upside. Traders may take cues from US consumer confidence data,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Forex traders said the rupee is likely to remain within a narrow range as the Reserve Bank of India has been actively intervening in the market, consistently absorbing inflows.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 100.79.

Brent crude, the global oil benchmark, declined 0.87% to $80.72 per barrel.

On the domestic equity market front, Sensex rose 13.65 points, or 0.02%, to close at 81,711.76 points. The Nifty closed 7.15 points, or 0.03%, up at 25,017.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹483.36 crore, according to exchange data.

Reserve Bank Governor Shaktikanta Das on Monday said the central bank is constantly working on policies, systems, and platforms to make the country’s financial sector strong, nimble and customer centric.

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The Indian rupee nosedived 14 paise to 83.91 (provisional) against the U.S. dollar on Wednesday (August 21, 2024) amid unabated outflow of foreign capital and volatile domestic equity markets.

Forex traders said a weak American currency and lower level of crude prices, however, cushioned the local unit at lower level.

At the interbank foreign exchange, the rupee opened weak at 83.79 and touched the intra-day low of 83.94 against the greenback. The unit finally settled at 83.91 (provisional) against the dollar, registering a loss of 14 paise from its previous days’ closing level of 83.77.

The rupee settled 10 paise higher at 83.77 against the American currency on Tuesday, a day after gaining 8 paise.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee declined on recovery in U.S. dollar index and US treasury yields.

“FII outflows also weighed on the rupee. However, weak crude oil prices cushioned the downside.” He said the rupee is expected to trade with a slight negative bias due to recovery in the US dollar and geopolitical tension in the Middle East.

“USD-INR spot price is expected to trade in a range of Rs 83.70 to Rs 84.20,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.09 per cent at 101.38.

Analysts said the dollar index is at its seven-month low level amid concerns over upcoming PMI data from the US and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole Symposium later this week.

Brent crude, the global oil benchmark, rose 0.40 per cent to USD 77.51 per barrel.

On the domestic equity market front, Sensex rose 102.44 points, or 0.13%, to close at 80,905.30 points. The Nifty went up 71.35 points, or 0.29% to 24,770.20 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, offloading shares worth ₹1,457.96 crore, according to exchange data.

The rupee settled 10 paise higher at 83.77 against the American currency on Tuesday. File
| Photo Credit: The Hindu

The Indian rupee depreciated by 7 paise to 83.84 against the U.S. dollar in early trade on Wednesday (August 21, 2024), tracking subdued domestic equity market trend and unabated outflow of foreign capital.

A weak American currency and lower crude prices, however, supported the local unit and prevented its sharp fall, forex traders said.

At the interbank foreign exchange, the rupee opened weak at 83.79 and lost further to 83.84 against the greenback, declining 7 paise from its previous days’ closing level of 83.77.

The rupee settled 10 paise higher at 83.77 against the American currency on Tuesday (August 20, 2024), a day after gaining 8 paise.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally higher by 0.02% to 101.31.

Analysts said the dollar index is at a seven-month low level amid concerns over upcoming Purchasing Managers’ Index (PMI) data from the U.S. and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole Symposium later this week.

Brent crude, the global oil benchmark, declined 0.17% to $77.07 per barrel.

On the domestic equity market front, Sensex fell 24.50 points, or 0.03%, to 80,778.36 points. The Nifty was almost flat at 24,699.55 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday (August 20, 2024), offloading shares worth ₹1,457.96 crore, according to exchange data.

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| Photo Credit: Reuters

The Indian rupee stayed firm for the second straight session and settled 8 paise higher at 83.79 (provisional) against the U.S. dollar on Tuesday (August 20, 2024), buoyed by positive domestic equity markets, weak American currency and lower crude oil prices.

Forex traders said, foreign fund outflow, however, resisted a sharp rise in the local unit.

At the interbank foreign exchange, the rupee opened at 83.86 against the greenback and traded in the range of 83.76 to 83.88. The unit finally settled at 83.79 (provisional) against the dollar, registering a gain of 8 paise from its previous closing level.

On Monday, the rupee settled 8 paise higher at 83.87 against the American currency.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee rose to the highest levels in nearly two and a half weeks on a weak US dollar and positive domestic markets.

“A decline in crude oil prices also supported the rupee. However, FII outflows capped sharp gains.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.04% to 101.68.

Analysts said the U.S. dollar declined to a seven-month low on rising odds of a rate cut by the Federal Reserve.

“USD-INR spot price is expected to trade in a range of Rs 83.50 to Rs 84,” Choudhary said, adding that concerns over upcoming PMI data from the US and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole Symposium later this week may keep investors awaiting for further cues.

Brent crude, the global oil benchmark, declined 0.31% to $77.42 per barrel.

On the domestic equity market front, Sensex climbed 378.18 points, or 0.47%, to 80,802.86 points. The Nifty rose 126.20 points, or 0.51%, to 24,698.85 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth ₹2,667.46 crore, according to exchange data.

The Indian rupee appreciated by 8 paise to close at 83.87 (provisional) against the U.S. dollar on Monday (August 19, 2024), supported by a weak US dollar and a decline in crude oil prices.

Forex traders said fresh foreign fund inflows boosted investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.88 against the greenback, then gained ground and touched an intra-day high of 83.84, and a low of 83.93 against the American currency.

The local currency finally settled for the day at 83.88 (provisional) against the American currency.

On Friday, the rupee moved in a tight range and settled just 1 paisa lower at 83.95 against the American currency.

Over the past shortened week, the rupee showed minimal fluctuation and narrowly steered clear of the critical 84-mark.

“We expect the rupee to trade with a slight positive bias on rise in risk appetite in global markets and a weak US dollar. Softening of crude oil prices may also support the rupee,” said Anuj Choudhary — Research Analyst at Sharekhan by BNP Paribas.

Traders said geopolitical tension in the Middle East may cap a sharp upside for the local unit.

Investors may remain cautious ahead of PMI data from the US and Fed Chair Jerome Powell’s speech at Jackson Hole Symposium for any cues on rate cuts by the central bank.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.28% to 102.17.

Brent crude, the global oil benchmark, declined 0.87% to $78.99 per barrel.

On the domestic equity market front, Sensex declined 12.16 points, or 0.02%, to 80,424.68 points. The Nifty rose 31.50 points, or 0.13%, to 24,572.65 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹766.52 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped $4.8 billion to $670.119 billion for the week ended August 9, the Reserve Bank of India said on Friday.

In the previous reporting week, the kitty jumped $7.533 billion to an all-time high of $674.919 billion.

A customer holds hundred rupees Indian currency notes near a roadside currency exchange stall.
| Photo Credit: Reuters

The Indian rupee witnessed range-bound trading and settled for the day on a flat note at 83.97 (provisional) against the U.S. dollar on Tuesday (August 13, 2024), as weak domestic markets and a surge in crude oil prices weighed on investor sentiments.

Forex traders said risk aversion in the global markets amid heightened geopolitical tension in the Middle East between Israel and Iran also dented sentiments.

At the Interbank Foreign Exchange Market, the local unit traded in a tight range as it opened at 83.95 and finally settled at 83.97 (provisional) against the American currency, unchanged from its previous close.

On Monday, the rupee settled for the day lower by 2 paise at 83.97 against the American currency. The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the U.S. dollar on August 5.

“We expect the rupee to trade with a slight negative bias on risk aversion in the global markets amid heightened geopolitical tension in the Middle East between Israel and Iran. Rising crude oil prices and weak domestic markets may also weigh on the domestic currency,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

However, the mixed-to-weak U.S. dollar amid dovish comments from Fed speakers may support the rupee at lower levels.

“Investors may remain cautious ahead of the U.S. CPI, retail sales, and consumer confidence data from the U.S. this week,” said Mr. Choudhary, adding that the USD-INR spot price is expected to trade in a range of 83.75 to 84.25.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% higher at 103.19.

Brent crude, the global oil benchmark, declined 0.27% to $82.08 per barrel.

On the domestic macroeconomic front, the net direct tax collection in the country grew 22.48% to about ₹6.93 lakh crore as of August 11 of this fiscal.

The retail inflation eased to 3.54% with food prices falling after a good monsoon. It was the lowest in the last 5 years and has dipped below RBIs targeted rate of 4%.

However, India’s industrial production slowed to a five-month low of 4.2% in June 2024, mainly due to poor performance of the manufacturing sector, though power and mining sectors continue to perform well, as per official data released on Monday (August 12, 2024).

On the domestic equity market front, Sensex declined 692.89 points, or 0.87%, to 78,956.03 points. The Nifty fell 208.00 points, or 0.85%, to 24,139.00 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 4,680.51 crore, according to exchange data.