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

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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| Photo Credit: Reuters

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.

The rupee paused its two days of gains and settled 6 paise lower at 83.24 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee paused its two days of gains and settled 6 paise lower at 83.24 (provisional) against the U.S. dollar on Thursday as rising crude oil prices dented the investor sentiment.

Forex analysts said early gains in the domestic currency on the back of the weak dollar were reversed by the subdued domestic equity markets and concerns over foreign funds withdrawal.

At the interbank foreign exchange, the rupee opened at 83.17 and then traded between the intra-day peak of 83.12 and the lowest level of 83.25 against the greenback. The local unit finally settled at 83.24 (provisional), registering a loss of 6 paise from its previous close.

The rupee had settled 7 paise higher on Wednesday, a day after gaining 3 paise against the American currency.

Market participants were also awaiting the industrial production data for August and inflation numbers for September to be released later in the day, which will provide insights into the country’s economic health.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee is expected to trade with a slight positive bias on expectations of a decline in India’s inflation and a rise in risk appetite in global markets.

“Traders may remain cautious ahead of India’s CPI and IIP data. Traders may also take cues from U.S. CPI, weekly unemployment claims and Federal Budget balance data. USD-INR spot price is expected to trade in a range of ₹82.70 to ₹83.60,” Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 105.72.

Brent crude futures, the global oil benchmark, witnessed a sharp rise of 1.20 per cent to $86.85 per barrel.

On the domestic equity market front, the BSE Sensex closed 64.66 points or 0.10 per cent lower at 66,408.39. The broader NSE Nifty declined 17.35 points or 0.09 per cent to 19,794.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹421.77 crore, as per exchange data.

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| Photo Credit: Reuters

The rupee declined by 20 paise to settle at 83.14 (provisional) against the U.S. dollar on September 25 due to rising crude oil prices and a strong American currency against major rivals overseas.

Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said.

At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback.

It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close.

On Friday, the rupee climbed 19 paise to close at 82.94 against the U.S. dollar.

Friday’s gain in the rupee was attributed to JP Morgan’s announcement that it will include Indian government securities in its global bond index starting June 2024, a move which is expected to bring in $25-30 billion of inflows into the Indian debt market.

On the other hand, the dollar strengthened due to an increased month-end demand of the American currency by importers and rising U.S. Treasury yield amid concerns of further interest rate hikes by the U.S. Federal Reserve.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said, “Indian rupee declined on Monday on a strong dollar and weak domestic equities. Selling pressure from FIIs also put downside pressure on the rupee. US.. dollar gained on hawkish FOMC last week”.

He said the rupee is likely to trade with a slight negative bias on strong dollar and risk aversion in global markets.

“FII outflows and elevated crude oil prices may put further downside pressure on the domestic currency. However, any intervention by the RBI may support the rupee at lower levels. $/₹spot price is expected to trade in a range of ₹82.75 to ₹83.60,” Mr. Chaudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.08% to 105.67.

Brent crude futures, the global oil benchmark, advanced 0.45% to $93.69 per barrel.

On the domestic equity market front, the BSE Sensex closed 14.54 points or 0.02% higher at 66,023.69. The broader NSE Nifty settled flat at 19,674.55.

India’s foreign exchange reserves declined by $867 million to $593.037 billion in the week ended September 15, the Reserve Bank said on Friday.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹1,326.74 crore, according to exchange data.

Equity benchmark indices Sensex and Nifty hit new record peaks in early trade on Friday | file hpot
| Photo Credit: Reuters

Equity benchmark indices Sensex and Nifty hit new record peaks in early trade on Friday, helped by a rally in global markets and fresh foreign inflows.

Rallying for the 11th day running, the 30-share BSE Sensex climbed 255.46 points to hit its fresh all-time high of 67,774.46 in early trade. The Nifty went up by 70.05 points to reach its new lifetime peak of 20,173.15.

Among the Sensex firms, HCL Technologies, Tata Motors, Wipro, HDFC Bank, Tech Mahindra, Tata Consultancy Services, Infosys and Mahindra & Mahindra were the major gainers.

Asian Paints, Hindustan Unilever, Titan and Axis Bank were among the laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading with gains.

The U.S. markets ended in positive territory on Thursday.

Foreign Institutional Investors (FIIs) turned buyers on Thursday as they bought equities worth ₹294.69 crore, according to exchange data.

“The participation of blue chips like Infosys, RIL, L&T, HDFC Bank and ICICI Bank has imparted resilience to the ongoing rally. Even though the undercurrent of the market is bullish the high valuations and new risks like surging crude and rising dollar index can impact the market negatively.

“Brent crude at $94 is a major macro worry which the market cannot ignore for long,” V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Global oil benchmark Brent crude climbed 0.82 per cent to $94.47 a barrel.

The BSE benchmark had climbed 52.01 points or 0.08 per cent to settle at 67,519 on Thursday. The Nifty advanced 33.10 points or 0.16 per cent to end at its all-time closing high of 20,103.10.