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 settled flat at 83.27 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee settled flat at 83.27 against the U.S. dollar amid a weak trend in domestic equities and surging crude oil prices in the international markets.

Forex traders said the safe-haven dollar gained ground amidst heightened concerns in the Middle East.

At the interbank foreign exchange, the domestic unit opened at 83.24 and finally settled at 83.27 against the American currency.

During the day, the rupee witnessed an intra-day high of 83.21 and a low of 83.28 against the greenback.

On Friday, the rupee declined 2 paise to settle at 83.27 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.43 per cent higher at 106.49.

Brent crude futures, the global oil benchmark, rose 3.29 per cent to $87.36 per barrel.

Amid escalating Israel-Hamas conflict heavily impacted risk assets, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

The market focus is currently on the fighting and how it could affect the oil market on supply concerns, Bhansali said, adding that accordingly, risky assets were sold off and so was the rupee though well controlled by the RBI.

The market is awaiting FOMC meeting minutes due on Wednesday, while important data due Tuesday are speeches by the ECB president and IMF/World Bank meetings, Mr. Bhansali said.

On the domestic equity market front, the BSE Sensex closed 483.24 points or 0.73 per cent lower at 65,512.39. The broader NSE Nifty declined 141.15 points or 0.72 per cent to 19,512.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹90.29 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped further by $3.794 billion to $586.908 billion for the week ended September 29, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had declined by $2.335 billion to $590.702 billion as of September 22.

The rupee edged lower by 1 paisa to settle at an all-time low of 83.10 (provisional) against the U.S. dollar
| Photo Credit: V. Sudershan

The rupee edged lower by 1 paisa to settle at an all-time low of 83.10 (provisional) against the U.S. dollar on Friday, weighed down by a negative trend in domestic equities and foreign fund outflows.

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and a rising U.S. dollar.

At the interbank foreign exchange, the domestic unit opened at 83.03 against the dollar and moved in a range of 83.02 to 83.13 in the day trade. It finally ended the day at 83.10 (provisional), registering a fall of 1 paisa from its previous close.

On Thursday, the rupee settled lower by 1 paisa at a record low of 83.09 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.11 per cent to 103.46.

Brent crude futures, the global oil benchmark, declined 0.32 per cent to $83.85 per barrel.

The rupee declined marginally on weak domestic markets and foreign fund outflows, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

However, the softness of the US dollar cushioned the downside. The U.S. dollar eased as the Chinese central bank intervened after the Yuan fell to a 16-year low.

The U.S. dollar gained on Thursday as US weekly unemployment claims declined to 239,000 as compared to 250,000 in the previous week showing a tight labour market.

“We expect the rupee to trade with a negative bias on risk aversion in global markets and overall strength in the greenback. Recovery in crude oil prices may also weigh on Rupee. However, any intervention by the Reserve Bank of India may support Rupee at lower levels. USDINR spot price is expected to trade in a range of ₹82.80 to ₹83.50,” Mr. Choudhary added.

On the domestic equity market front, the 30-share BSE Sensex closed 202.36 points or 0.31 per cent lower at 64,948.66 points. The broader NSE Nifty declined 55.10 points or 0.28 per cent to close at 19,310.15 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹1,510.86 crore, according to exchange data.