Forex traders said rupee trade was range-bound as the Reserve Bank of India (RBI) is maintaining a firm grip on the domestic currency.
| Photo Credit: The Hindu

The rupee witnessed range-bound trade and settled for the day higher by 6 paise at 83.90 (provisional) against the US dollar on Friday (September 13, 2024) supported by weakening of the American currency in the overseas market and significant foreign fund inflows.

Forex traders said rupee trade was range-bound as the Reserve Bank of India (RBI) is maintaining a firm grip on the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.92 and witnessed an intraday high of 83.85 and a low of 83.98 against the American currency.

The domestic unit finally settled for the day at 83.90 (provisional), higher by 6 paise over its previous close.

On Thursday (September 12, 2024), the local unit settled 3 paise higher at 83.96 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.46% to 100.90 points.

Brent crude, the international benchmark, gained 1.03% to USD 72.71 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 71.77 points, or 0.09%, to close at 82,890.94 points, while the Nifty fell 32.40 points, or 0.13%, to 25,356.50 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday (September 12, 2024), as they purchased shares worth ₹7,695.00 crore, according to exchange data.

On the domestic macroeconomic front, retail inflation in August inched up to 3.65%, though vegetables and pulses witnessed price rises in double digits, according to official data released on Thursday (September 12, 2024).

India’s industrial production output decelerated to 4.8% year-on-year in July 2024, mainly due to poor performance of the manufacturing and mining sectors, as per official data released on Thursday (September 12, 2024).

 Rupee appreciated by 5 paise to 83.91 against the U.S. dollar. File
| Photo Credit: Reuters

The rupee appreciated by 5 paise to 83.91 against the U.S. dollar in early trade on Friday (September 13, 2024) supported by weakening of the American currency in the overseas market and significant foreign fund inflows.

Forex traders said the rupee continues to trade within a tight range, as the Reserve Bank of India (RBI) is maintaining a firm grip on the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.92, then inched further to touch 83.91, registering a rise of 5 paise from its previous close.

On Thursday, the local unit settled 3 paise higher at 83.96 against the U.S. dollar.

“The Indian rupee appears to be moving in its own orbit, refusing to appreciate and continuing to trade within a tight range, as the RBI maintains a firm grip on the domestic currency. In the near-term, the rupee is expected to trade within a narrow band of 83.80 to 84.05, while the medium-term outlook slightly broadens the range to 83.70 to 84.05,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.30% to 101.06 points.

Brent crude, the international benchmark, gained 0.49% to $72.34 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 114.32 points, or 0.14%, to 82,848.39 points, while the Nifty was down 39.70 points, or 0.16%, to 25,349.20 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth ₹7,695.00 crore, according to exchange data.

On the domestic macroeconomic front, retail inflation in August inched up to 3.65%, though vegetables and pulses witnessed price rise in double digits, according to official data released on Thursday.

India’s industrial production output decelerated to 4.8% year-on-year in July 2024, mainly due to poor performance of the manufacturing and mining sectors, as per official data released on Thursday.

The rupee traded in a narrow range on Tuesday (September 10, 2024) and depreciated 3 paise to 83.98 against the American currency. File
| Photo Credit: Reuters

The rupee traded in a narrow range on Tuesday (September 10, 2024) and depreciated 3 paise to 83.98 against the American currency, amid a muted trend in domestic equities.

Forex traders said foreign institutional inflows, alongside significant corrections in asset classes like the Dollar Index and crude oil prices, supported the rupee, while the Reserve Bank’s active intervention kept the rupee in a tight range.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.95 against the American currency and touched 83.98 in initial trade, registering a fall of 3 paise over its previous close.

On Monday, the rupee traded in a narrow range and closed flat at 83.95 against the American currency.

The U.S. dollar was steady in early trading on Tuesday, with yen inching lower to 143.37 as investors braced for the U.S. CPI inflation for further cues.

“Market would keep a close watch on the Reserve Bank of India (RBI) which may continue selling U.S. dollars to protect the rupee from crossing 84.00,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.08% to 101.63 points.

Brent crude, the international benchmark, was trading lower by 0.07% to $71.79 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 10.11 points, or 0.01%, to 81,569.65 points, while the Nifty was up 10.05 points, or 0.04%, to 24,946.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹1,176.55 crore, according to exchange data.

The rupee appreciated by 4 paise to 83.97 against the U.S. dollar in early trade on Thursday. File
| Photo Credit: Reuters

The rupee appreciated by 4 paise to 83.97 against the U.S. dollar in early trade on Thursday (September 5, 2024) supported by the weakening of the American currency in the overseas market and a positive trend in domestic equities.

Forex traders said an overall drop in crude oil prices and foreign fund inflows aided investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.98, then inched further to touch 83.97, registering a rise of 4 paise from its previous close.

On Wednesday, the rupee breached the crucial 84-mark for the second time within a month and settled 3 paise lower at 84.01 against the American currency.

“The Indian rupee continues to remain weak despite Asian currencies rising as inflows get absorbed by the Reserve Bank, while oil companies and FPIs and importers continue to buy U.S. dollars from the market keeping the currency on the lower side despite gains seen by its Asian and emerging market counterparts,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.03% to 101.32 points.

Brent crude, the international benchmark, gained 0.19% to $72.84 per barrel in futures trade. Forex traders said crude oil levels of $72 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.

In the domestic equity market, the 30-share BSE Sensex advanced 27.21 points, or 0.03%, to 82,379.85 points, while the Nifty was up 10.45 points, or 0.04%, to 25,209.15 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday (September 4), as they purchased shares worth ₹975.46 crore, according to exchange data.