Rupee notes displayed at a roadside currency exchange stall in New Delhi. File photo
| Photo Credit: REUTERS

The rupee witnessed range-bound trading in initial deals against the US dollar on Monday (August 12, 2024), as market participants remained on the sidelines ahead of the release of key domestic macroeconomic data.

Forex traders said for the USD/INR pair 84.00 level is acting as a psychological resistance. Market participants are also awaiting cues from the Indian CPI inflation and IIP numbers scheduled to be released later in the day.

At the interbank foreign exchange, the rupee opened at 83.95 against the greenback and traded in a tight range. In initial trade it touched 83.96, registering a fall of 1 paisa over its previous close.

On Friday, the rupee settled for the day higher by 2 paise at 83.95 against US dollar.

“The Indian rupee is expected to be calm as the Reserve Bank continues to buy dollars at lower levels and sell a smaller quantity to keep rupee in a small range,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP said.

The Reserve Bank of India (RBI) seems to be protecting 83.96 for now. Market also awaits for US CPI inflation data on Wednesday, Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent higher at 103.22.

Brent crude, the global oil benchmark, advanced 0.18 per cent to USD 79.80 per barrel.

On the domestic equity market front, Sensex declined 269.65 points, or 0.34 per cent, to 79,436.26 points. The Nifty fell 74.65 points, or 0.31 per cent, to 24,292.85 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹406.72 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped by USD 7.533 billion to a new record high of USD 674.919 billion for the week ended August 2, the Reserve Bank said on Friday (August 9, 2024).

A customer holds hundred rupees Indian currency notes near a currency exchange stall in New Delhi.
| Photo Credit: REUTERS

The rupee slipped 2 paise to 83.42 against the US dollar in early trade on Thursday, May 30, tracking the outflow of foreign capital amid volatile domestic equity markets.

Forex traders said a strong American currency also weighed on the local unit even as retreating crude oil prices capped the rupee’s sharp fall.

At the interbank foreign exchange market, the local unit opened at 83.42 and slipped further to 83.44. It soon recovered to trade at 83.42 against the greenback, registering a loss of 2 paise from its previous closing level.

On Wednesday, the rupee plunged 22 paise to close at 83.40 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.10, higher 0.06 per cent.

Analysts attributed the higher dollar index to the rising US Treasury yield amid the hawkish stance of the US Federal Reserve.

Also, they said that market participants will closely monitor the US GDP data for the first quarter (second estimate), weekly job reports and pending home sales numbers to be released later in the day.

Brent crude futures, the global oil benchmark, fell 0.05 per cent to USD 83.56 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 227.31 points, or 0.31 per cent lower at 74,275.59 points. The broader NSE Nifty fell 62.20 points or 0.27 per cent to 22,642.50 points in initial trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, selling shares worth ₹5,841.84 crore, according to exchange data.