Reports of selling of dollars by state-run banks also supported the rupee.  File
| Photo Credit: REUTERS

The rupee appreciated 13 paise to settle at 83.42 (provisional) against the U.S. dollar on Tuesday, buoyed by fresh inflow of foreign capital and a firm trend in domestic equity markets, wherein benchmark indices scaled new peaks.

Forex traders said reports of dollar selling by public sector banks supported the Indian currency. However, higher crude oil prices capped the gains in the local unit.

At the interbank foreign exchange market, the local unit opened at 83.52 and hit the intraday high of 83.39 against the greenback during the session.

It finally settled at 83.42 (provisional) against the dollar, registering a gain of 13 paise from its previous close.

On Friday, the rupee had settled 1 paisa lower at 83.55 against the U.S. dollar.

Forex markets were closed on Monday on account of Bakri Id.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee gained as domestic markets hit new all-time highs and amid fresh foreign fund inflows.

“Reports of selling of dollars by state-run banks also supported the rupee. However, a positive tone in the U.S. dollar and surge in crude oil prices capped sharp gains,” he said, adding, “USD-INR spot price is expected to trade in a range of ₹83.10 to ₹83.70.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.06, higher by 0.12%.

According to analysts, the U.S. dollar gained after hawkish comments by officials of the U.S. Federal Reserve, while market participants were awaiting further cues from retail sales and industrial production data from the U.S.

Brent crude futures, the global oil benchmark, declined 0.33% to $83.97 per barrel.

In the domestic equity market, the 30-share BSE Sensex rose 308.37 points, or 0.40%, to close at a new peak of 77,301.14 points. The broader NSE Nifty settled 92.30 points, or 0.39%, higher to close at an all-time high of 23,557.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹2,175.86 crore, according to exchange data.

Analysts attributed the strong investor sentiment to the firm domestic macroeconomic outlook.

Fitch Ratings on Tuesday raised India’s growth forecast for current fiscal to 7.2%, from 7% projected in March, citing a recovery in consumer spending and increased investment.

Meanwhile, India’s forex reserves jumped $4.307 billion to a new all-time high of $655.817 billion for the week ended June 7, the Reserve Bank of India (RBI) on Friday.

The kitty had jumped $4.837 billion to $651.51 billion in the previous reporting week.

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

The rupee pared its initial gains and settled for the day 5 paise lower at 83.50 (provisional) against the U.S. dollar on Monday, weighed down by elevated crude oil prices.

Forex traders said a weak trend in domestic equities also dented investor sentiments.

At the interbank foreign exchange, the local unit opened at 83.43, then touched an intra-day high of 83.42 and a low of 83.50 against the greenback. The rupee finally settled at 83.50 (provisional) against dollar, registering a fall of 5 paise over its previous close.

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

Forex traders said U.S. dollar demand from importers and a recovery in crude oil prices weighed on the rupee.

“We expect the rupee to trade with a slight positive bias on the rise in risk appetite in global markets. However, any recovery in crude oil prices may cap sharp upside. Any renewed geopolitical tensions in the Middle East may also weigh on rupee at higher levels,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

USD-INR spot price is expected to trade in a range of ₹83.20 to ₹83.70, Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% higher at 105.09.

Brent crude futures, the global oil benchmark, advanced 0.80% to $83.62 per barrel.

On the domestic equity market front, Sensex advanced 17.39 points, or 0.02%, to settle at 73,895.54 points. The Nifty fell 33.15 points, or 0.15%, to close at 22,442.70 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.

On the macroeconomic front, the seasonally adjusted HSBC India Services Business Activity Index fell from 61.2 in March to 60.8 in April, highlighting one of the strongest growth rates seen in just under 14 years.

Image used for representative purpose only.
| Photo Credit: REUTERS

The rupee appreciated 3 paise to settle at 83.43 (provisional) against the U.S. dollar on Friday, tracking a weak American currency and retreating crude oil prices.

Forex traders said a massive selling in the domestic equity market and outflow of foreign funds capped the gains in the local currency.

At the interbank foreign exchange, the domestic unit opened at 83.40 and moved in the range of 83.34 and 83.44 against the greenback during the session.

The local unit finally settled at 83.43 (provisional) against the dollar, registering a rise of 3 paise from its previous close.

The rupee had settled 3 paise lower at 83.46 against the dollar on Thursday.

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the rupee gained on a weak U.S. dollar and a decline in crude oil prices. However, weak domestic markets and FII outflows capped sharp gains.

The weak dollar was attributed to the U.S. Federal Reserve’s decision to keep the key interest rate unchanged for the sixth consecutive time, citing slower progress on the inflation front.

Mr. Choudhary further said the rupee is expected to trade with a slight negative bias on weak domestic markets and selling pressure from foreign investors. However, a weak tone and a soft U.S. dollar may support the rupee at lower levels.

“Traders may remain cautious ahead of non-farm payrolls report and ISM services PMI data from the U.S. today. Encouraging non-farm payrolls may support the dollar while dismal data may weigh on the greenback. USD-INR spot price is expected to trade in a range of ₹83.20 to ₹83.60,” he added.

India’s manufacturing PMI fell to 58.8 in April 2024 from 59.1 in the previous month, a monthly survey said on Thursday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI), however, recorded the second fastest improvement in operating conditions in three-and-a-half years supported by buoyant demand.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.10% to 105.07.

Brent crude futures, the global oil benchmark, slipped 0.04% to $83.64 per barrel.

On the domestic equity market front, Sensex tumbled 732.96 points, or 0.98%, to settle at 73,878.15, and Nifty tanked 172.35 points, or 0.76%, to close at 22,475.85.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday, as they sold shares worth ₹964.47 crore on a net basis, according to exchange data.

The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade. File
| Photo Credit: V. SUDERSHAN

The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade on Wednesday, tracking a weak America currency and softening crude oil prices in the overseas market.

Some buying by foreign equity investors supported the Indian currency even though it was pressured by a subdued sentiment in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened stronger by 8 paise at 83.08 and then touched the lowest level of 83.11 against the greenback, registering a gain of 5 paise from its previous close.

On Monday, the rupee closed 4 paise lower at 83.16 against the U.S. dollar. Forex markets were closed on Tuesday on account of Dussehra.

Gaurang Somaiya, Forex and bullion analyst, Motilal Oswal Financial Services, said that the dollar fell against its major crosses after U.S. yields retracted from its record level.

He said the USD-INR (Spot) is expected to “trade sideways with a negative bias and quote in the range of 82.80 and 83.20”.

“Market participants will now be keeping an eye on the US GDP data that is due tomorrow and could trigger more wild swings in bond yields and currency markets. Euro and pound fell in yesterday’s session after preliminary manufacturing data came in below estimates,” Mr. Somaiya 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 106.18.

Global oil price benchmark Brent crude inched up 0.05 per cent to $88.11 per barrel.

On the domestic equity market front, Sensex fell 48.16 points or 0.06 per cent to 64,530.02 points while broader Nifty was down 11.20 points or 0.06 per cent at 19,270.55 points.

Foreign Institutional Investors bought equities worth market ₹252.25 crore on Monday, according to exchange data.

The rupee traded in a narrow range to settle 5 paise higher at 83.23 (provisional) against the U.S. dollar on Thursday, tracking softening crude prices in the international markets amid lingering geopolitical uncertainties. However, foreign fund outflows, a weak greenback overseas and a negative trend in domestic equities weighed on investor sentiments, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.26 against the U.S. currency and witnessed a high of 83.23 and a low of 83.28 during intra-day trade.

The local unit settled at 83.23 (provisional), registering a gain of 5 paise over its previous close.

The rupee declined on Thursday pressurised by a weak tone in the domestic markets and a rise in U.S. Dollar. FII selling also weighed on the domestic currency, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05% to 106.61.

Global oil benchmark Brent crude futures fell 1.92% to $89.74 per barrel.

“We expect the rupee to trade with a slight negative bias as risk aversion in the global markets amid rising geopolitical uncertainty in the Middle East may put pressure on Rupee,” Mr. Choudhary said.

However, any diplomatic efforts to contain the conflict in the Middle East may support the rupee at lower levels. Traders may take cues from weekly unemployment claims and existing home sales data from the U.S.

“Investors may remain cautious ahead of U.S. Federal Reserve Chair, Jerome Powell’s speech for some cues over monetary policy trajectory. USD/INR spot price is expected to trade in a range of ₹83 to ₹83.60,” he said.

On the domestic equity market front, Sensex fell 247.78 points or 0.38% to settle at 65,629.24 points. The Nifty declined 46.40 points or 0.24% to 19,624.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹1,831.84 crore, according to exchange data.

Image used for representational purpose only.
| 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.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee pared initial gains and settled 3 paise lower at 83.27 against the U.S. dollar on October 5, following a recovery in the American currency.

Forex traders said the rupee consolidated in a narrow range as investors preferred to stay on the sidelines ahead of the Reserve Bank of India’s rate decision.

At the interbank foreign exchange market, the rupee opened at 83.21 against the greenback and touched an intra-day low of 83.30 and a high of 83.16. It finally settled at 83.27, down 3 paise over its previous close of 83.24.

“The Indian rupee erased opening gains following recovery in the greenback but ended almost steady ahead of the U.S. weekly jobless data and the RBI’s rate decision,” said Dilip Parmar, Research Analyst, HDFC Securities.

Mr. Parmar said the rupee was well supported by lower crude oil prices, the central bank’s dollar supply and recovery in the domestic equity markets.

“Spot USDINR is expected to trade between 83.10 to 83.35 with the trend remaining sideways to bullish,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 106.79.

Global oil benchmark Brent crude futures dipped 0.97% to $84.98 per barrel.

On the domestic equity market front, the 30-share BSE Sensex ended 405.53 points, or 0.62%t, higher at 65,631.57, while the broader NSE Nifty advanced 109.65 points, or 0.56%, to 19,545.75.

Foreign institutional investors remained net sellers in the capital market on Wednesday, offloading shares worth ₹4,424.02 crore, as per stock exchange data.

The rupee pared initial gains to settle 2 paise lower at 83.03 (provisional) against the U.S. dollar on Thursday, weighed down by a surge in crude oil prices and strong American currency overseas.

However, a positive trend in domestic markets cushioned the downside for the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened at 82.98 against the U.S. dollar and moved in a range of 82.93 and 83.04.

The rupee finally settled at 83.03 (provisional) against the U.S. dollar, down 2 paise from its previous close.

On Wednesday, the rupee closed at 83.01 against the U.S. currency.

“The Indian rupee fell on Thursday on a positive U.S. Dollar and rising crude oil prices. This may impact the external payments.

“However, the positive tone of domestic equities prevented a sharp fall in the domestic currency. The U.S. Dollar gained on hotter than expected CPI raised rate hike concerns,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.01% to 104.77.

Brent crude futures, the global oil benchmark, advanced 0.70% to $92.52 per barrel.

“We expect the rupee to trade with a slight negative bias on expectations that the U.S. Dollar may rise further. Elevated crude oil prices and selling pressure from foreign investors may put further pressure on the rupee,” Mr. Choudhary said.

However, any intervention by the Reserve Bank of India and positive domestic markets may support the rupee at lower levels, Mr. Choudhary said, adding that traders may remain cautious ahead of retail sales and PPI data from the U.S., expected to be softer than the previous month.

On the domestic equity market front, the 30-share BSE Sensex closed 52.01 points or 0.08% higher at 67,519.00. The broader NSE Nifty advanced 33.10 points or 0.16% to 20,103.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹1,631.63 crore, according to exchange data.

A man counts Indian currency notes inside a shop in Mumbai. File
| Photo Credit: REUTERS

The rupee appreciated 5 paise to settle at 82.86 (provisional) against the U.S. dollar on Wednesday, supported by a weak American currency against major rivals overseas.

However, foreign capital outflows and surging crude prices in the international markets capped the positive bias in the rupee, forex analysts said.

Investors were trading cautiously ahead of the U.S. inflation data and RBI’s monetary policy decision to be released on Thursday. The Reserve Bank’s rate-setting panel MPC started its three-day review meeting on Tuesday.

At the interbank foreign exchange, the domestic unit opened stronger at 82.83 and finally settled at 82.86 (provisional) against the dollar, registering a gain of 5 paise over its previous close.

During intra-day, the local unit touched the peak of 82.80 and hit a low of 82.86 against the greenback.

On Tuesday, the rupee had settled at a more than 8-month low level of 82.91 against the dollar.

“Indian rupee traded with a slight positive bias on Wednesday on some softening of the U.S. dollar today. However, a surge in crude oil prices and weak domestic markets capped sharp gains,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

He said the U.S. dollar rose on Tuesday after Moody’s downgraded credit ratings on several small to mid-sized U.S. banks and warned of a downgrade to others. “This led to a safe-haven appeal for the U.S. dollar. China’s CPI declined to 0.3%, posting its first year-on-year decline since February 2021.” Mr. Choudhary said the rupee is expected to trade with a negative bias on risk aversion in global markets and selling pressure from FIIs. “However, some softness in the U.S. dollar may support the rupee at lower levels.” “Traders may trim their positions ahead of RBI’s monetary policy decision tomorrow. Markets expect RBI to maintain the status quo and keep the repo rate unchanged at 6.5%. We expect the USD/INR spot to trade in the range of 82.40 to 83.30 in the near term,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.11% to 102.42.

Global oil benchmark Brent crude surged 0.75% to $86.82 per barrel.

On the domestic equity market front, the 30-share BSE Sensex closed 149.31 points or 0.23% higher at 65,995.81. The broader NSE Nifty advanced 61.70 points or 0.32% to close at 19,632.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹711.34 crore, according to exchange data.