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| Photo Credit: Reuters

The rupee depreciated 10 paise to 83.50 against the U.S. dollar in early trade on June 10, largely due to the rise in the dollar index and US yields.

Forex traders said uncertainty among market players was down as Narendra Modi was sworn in as Prime Minister on Sunday for a record-equalling third term. However, the strength of the American currency in the international market weighed on the local unit.

At the interbank foreign exchange market, the local unit opened at 83.48 and lost further ground to trade at 83.50 against the greenback, registering a loss of 10 paise from its previous closing level.

On Friday, the rupee appreciated 13 paise to 83.40 against the U.S. dollar.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, the rupee opened at 83.50 largely due to the rise in the dollar index and U.S. yields.

“The Reserve Bank of India (RBI) should be present protecting the rupee as existing policies of the government will continue with largely the same cabinet as in Modi-2.0,” Mr. Bhansali said.

PM Modi will be heading a 72-member Union Council of Ministers putting emphasis on continuity, youth and experience, while also rewarding partners in the BJP-led National Democratic Alliance (NDA) government.

Along with PM Modi, senior BJP leaders including Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman and S. Jaishankar, all ministers in the Modi 2.0 Cabinet, took oath as Cabinet ministers at the Rashtrapati Bhavan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.18, higher by 0.29%.

Brent crude futures, the global oil benchmark, advanced 0.31% to $79.87 per barrel.

On the domestic equity market, both benchmark indices, Sensex and Nifty, scaled record high levels in initial trade. The 30-share BSE Sensex was trading 292.08 points, or 0.38% higher at 76,985.44 points. The broader NSE Nifty was trading at 23,291.50 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹4,391.02 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped $4.837 billion to a new all-time high of $651.51 billion for the week ended May 31, the RBI said on Friday.

In the previous reporting week, the overall reserves had dropped $2.027 billion to $646.673 billion.

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| Photo Credit: Reuters

The rupee recovered from the lower level and appreciated 7 paise to 83.44 against the U.S. dollar in early trade on June 5, taking cues from domestic equity markets and lower crude oil prices overseas.

Forex traders said the rush for value-buying triggered an uptrend in equity markets, boosting the local currency which saw a steep decline on June 4 after the general elections results showed a less-than-expected majority for the BJP-led NDA.

Also read | Markets bounce back in early trade after massive drop on value-buying at lower levels

At the interbank foreign exchange market, the local unit opened at 83.50 and recovered some lost ground to trade at 83.44 against the greenback, registering a rise of 7 paise from its previous close.

On Tuesday, the domestic currency settled at 83.51 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% higher at 104.14.

Brent crude futures, the global oil benchmark, slipped 0.03% to $77.50 per barrel.

On the domestic equity market, the 30-share BSE Sensex climbed 172.89 points to 72,251.94 in early trade. The NSE Nifty went up 39.25 points to 21,923.75.

Both the indices ended more than 6% lower on Tuesday amid fear selling after the counting of votes showed disappointing results for the BJP-led NDA in the Lok Sabha elections with the alliance facing losses in its strongholds in the Hindi heartland, although it is expected to form the government with about 290 seats.

Foreign investors were net sellers of Indian equities on Monday as they offloaded shares worth ₹12,436.22 crore on a net basis. FIIs bought shares worth ₹26,776.17 crore and sold equities worth ₹39,212.39 crore in the cash segment.

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| Photo Credit: Reuters

The rupee appreciated by 3 paise to 83.10 against the U.S. dollar on May 28, tracking a positive trend in domestic equities and weakness of the American currency in the overseas market.

Forex traders rupee is likely to trade with a positive bias tracking a positive trend in domestic equities and expectations of fresh foreign inflows, however, a recovery in crude oil prices may cap a sharp upside.

At the interbank foreign exchange market, the local unit opened at 83.14 and gained further ground to trade at 83.10 against the greenback, registering a gain of 3 paise from its previous closing level.

On Monday, the rupee pared its initial gains and settled for the day lower by 3 paise at 83.13 against the U.S. dollar.

The opening for the rupee on Tuesday was flattish and the $/₹ pair should move within a narrow range of 83.00 to 83.20, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Importers need to keep buying in dips, as the Reserve Bank of India (RBI) may possibly not allow a big move downside for the pair, Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.42, lower by 0.12%.

Brent crude futures, the global oil benchmark, advanced 0.24% to $83.30 per barrel.

Going ahead, “the performance of Indian equities is expected to be a significant driver for the rupee, especially as investors position themselves ahead of the Lok Sabha election results scheduled for June 4,” said CR Forex Advisors MD Amit Pabari.

Given these factors, the rupee is expected to appreciate to around 82.80–82.50 in the near term, with medium-term projections ranging between 82.20 and 82.00, Mr. Pabari added.

On the domestic equity market, the 30-share BSE Sensex was trading 124.2 points, or 0.16% higher at 75,514.70 points. The broader NSE Nifty rose 47.95 points or 0.21% to 22,980.40 points in initial trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹541.22 crore, according to exchange data.

At the interbank foreign exchange, the rupee opened at 83.23 and traded in a narrow range of 83.18 to 83.24 against the U.S. dollar. It finally settled at 83.22 (provisional). File
| Photo Credit: The Hindu

The rupee on Wednesday staged a recovery after two days of steep losses to end 6 paise higher at 83.22 (provisional) against the U.S. dollar on positive cues from domestic equity markets.

However, selling pressure from foreign equity investors amid elevated levels of American currency and surging crude oil prices weighed on the local unit, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.23 and traded in a narrow range of 83.18 to 83.24 against the greenback. It finally settled at 83.22 (provisional), registering a gain of 6 paise from its previous close.

The rupee lost 34 paise in the past two sessions. It closed 15 paise lower at 83.28 against the dollar on Tuesday, a day after registering a decline of 19 paise.

The downward movement of the rupee was attributed to a strengthening dollar amid a record rise in U.S. Treasury yields. Also, the U.S. dollar surged to a ten-month high level after a Federal Reserve policymaker hinted at a prolonged interest rate hike cycle.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05% to 106.28.

Brent crude futures, the global oil benchmark, were trading 0.87% higher at $94.78 per barrel.

On the domestic equity market front, the BSE Sensex closed 173.22 points or 0.26% higher at 66,118.69. The broader NSE Nifty advanced 51.75 points or 0.26% to settle at 19,716.45.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth ₹693.47 crore, according to exchange data.

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The rupee appreciated 9 paise to close at 82.94 (provisional) against the U.S. dollar on Tuesday (September 12) amid fresh foreign fund inflows and expectations of better macroeconomic data.

Forex traders said the Indian rupee appreciated on Tuesday as domestic markets hit fresh record highs after Nifty breached the 20,000-mark for the first time on Monday.

At the interbank foreign exchange market, the local unit opened at 82.93 against the U.S. dollar and moved in a range of 82.86 to 83.01 in the day trade.

The rupee finally settled 9 paise higher at 82.94 (provisional) against the previous close.

On Monday, the rupee closed on a flat note at 83.03 against the American currency.

“Indian rupee outperforms among the Asian currencies on the central bank’s dollar selling ahead of the inflation data. The expectation of ease in India’s inflation numbers and better industrial output, which will be released after the market closes, supported the rupee,” Dilip Parmar, Research Analyst at HDFC Securities, said.

Spot USD-INR has support at 82.80 and resistance at 83.15. In the short term, the pair is likely to consolidate in a narrow range before heading higher while the medium-term trend remains bullish, Mr. Parmar said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18% to 104.76.

“The greenback is a marginally better bid as the market sits and waits for tomorrow’s August U.S. CPI release and ECB monetary policy decision. A hawkish tone from the U.S. CPI data and a hike from the ECB could push the greenback further higher,” Mr. Parmar added.

Brent crude futures, the global oil benchmark, advanced 0.81% to % 91.37 per barrel.

On the domestic equity market front, the BSE Sensex closed 94.05 points or 0.14% higher at 67,221.13 points. The broader NSE Nifty declined 3.15 points or 0.02% to 19,993.20

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth ₹1,473.09 crore, according to exchange data.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee recovered 6 paise to settle at 82.74 (provisional) against the U.S. currency on Wednesday following weakness in the U.S. dollar in global markets.

FII inflows into the capital market and firm equity markets supported the local unit while gains in crude oil prices restricted the rupee upside, according to analysts.

At the interbank foreign exchange, the domestic unit opened higher at 82.67 amid overnight losses in the U.S. dollar against major global rivals. It moved between a high of 82.66 and a low of 82.81 in intra-day trade.

The rupee finally closed at 82.74 against the dollar, a gain of 6 paise compared to the closing level of 82.80 on Tuesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 103.50 after U.S. data suggested that labour market was cooling, a scenario that could provide support for the U.S. Federal Reserve in eventual easing interest rates.

Brent crude futures, the global oil benchmark, rose 0.56% to $85.97 per barrel.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points while the broader Nifty advanced by 4.80 points to close at 19,347.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth ₹61 crore, according to exchange data.

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

The rupee reversed its three-day rally and depreciated by 13 paise to settle at 82.69 (provisional) against the U.S. dollar on Friday (August 25), tracking strong American currency and negative equity markets.

Rising crude oil prices also weighed on the domestic unit even as foreign fund inflows restricted losses, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 82.60 and touched the intra-day low of 82.72 against the greenback. It finally settled at 82.69 (provisional) against the dollar, registering a fall of 13 paise over its previous close.

On Thursday, the rupee appreciated by 16 paise to settle at 82.56 against the U.S. dollar, making it the third straight day of gain.

“Indian rupee depreciated on Friday on strong dollar and weak domestic markets. However, FII inflows cushioned the downside. The dollar rose on mixed to positive economic data from the U.S.,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

The latest U.S. government data showed a dip in weekly unemployment claims and an increase in core durable goods orders in July over the preceding month, raising expectations of a further rate hike by the U.S. Federal Reserve.

Investors are awaiting cues on the U.S. Fed’s monetary policy from Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday.

“We expect the rupee to trade with a slight negative bias on risk aversion in global markets and a strong U.S. dollar. However, weakness in crude oil prices and inflows by foreign investors may support the rupee at lower levels,” Mr. Chaudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18% to 104.17.

Global oil benchmark Brent crude futures climbed 1.39% to $84.52 per barrel.

On the domestic equity market front, the BSE Sensex closed 365.83 points or 0.56% lower at 64,886.51. The broader NSE Nifty declined 120.90 points or 0.62% to 19,265.80.

Foreign institutional investors (FIIs) were net buyers in equities on Thursday as they purchased shares worth ₹1,524.87 crore, according to exchange data.

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. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee recovered from its all-time low levels and appreciated by 5 paise to 83.05 against the U.S. dollar in early trade on Monday tracking a positive trend in domestic equities.

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 83.10, then touched a high of 83.05 against the American currency, registering a rise of 5 paise over its last close.

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

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02% to 103.39.

Dollar witnessed its longest winning streak in the last 15 months following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the U.S., said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services.

Rising uncertainty over economic recovery in China is leading to weakness in the Chinese Yuan and thereby weighing on the rupee, Somaiya added.

Most investors will be taking cues from the BRICS summit and the Jackson Hole Symposium. “We expect the USDINR(Spot) to trade sideways and quote in the range of 82.80 and 83.30,” Somaiya said.

Brent crude futures, the global oil benchmark, rose 0.73% to $85.42 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 117.43 points or 0.18% higher at 65,066.09. The broader NSE Nifty advanced 26.40 points or 0.14% to 19,336.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹266.98 crore, according to exchange data.

Meanwhile, India’s foreign exchange reserves jumped $708 million to $602.161 billion for the week ended August 11, the Reserve Bank of India (RBI) said on Friday.

This is the first increase in the kitty after declining for three consecutive weeks. In the previous week, the overall reserves had declined $2.417 billion to $601.453 billion.