According to an analyst, the rupee traded within a narrow range even after more updates came in on the escalating conflict in Israel. File photo
| Photo Credit: S.R. Raghunathan

The rupee appreciated 3 paise to 83.22 against the US dollar on Wednesday, October 11, 2023, tracking cues from positive equity markets and a weaker American currency against major rivals overseas.

However, selling pressure from foreign equity investors weighed on the Indian currency, forex traders said.

At the interbank foreign exchange, the rupee opened at 83.20 and then touched 83.22 against the greenback, up 3 paise from its previous close.

On Tuesday, the rupee settled at 83.25 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 105.77.

Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said the rupee traded within a narrow range even after more updates came in on the escalating conflict in Israel.

According to him, traders are expected to remain watchful of the US Federal Open Market Committee (FOMC) minutes that may indicate more interest rate hikes, adding strength to dollar.

“We expect the USD-INR (spot) to trade sideways and quote in the range of 83.05 and 83.40,” Somaiya added.

Brent crude futures, the global oil benchmark, rose 0.31 per cent to USD 87.92 per barrel.

In the domestic equity market, the 30-share BSE Sensex jumped 389.68 points or 0.58 per cent to 66,469.04 points while the broader NSE Nifty advanced 115 points or 0.58 per cent to 19,804.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth ₹1,005.49 crore, as per exchange data.

A forex dealer in Bombay looks at a graph on the movement of the rupee trade. File photo
| Photo Credit: Reuters

The rupee appreciated by 4 paise to 83.21 against the US dollar in early trade on Friday, October 6, 2023, on positive cues from the equity market ahead of the RBI’s interest rate decision.

Selling pressure from foreign equity investors amid strengthening dollar resulted in a negative bias, according to forex traders.

At the interbank foreign exchange, the domestic unit opened at 83.21 against the dollar and then reached the 83.22 level, before touching 83.21 again. This was a gain of 4 paise against the closing level of 83.25 on Thursday.

The six-member monetary policy committee of the Reserve Bank of India will announce its decision on key interest rates on Friday. Traders are also awaiting US weekly unemployment data later in the day.

“Rupee traded in a narrow range and volatility remained low ahead of the important RBI policy statement that will be released today.

“Expectation is that the central bank could keep rates on hold and maintain a hawkish stance,” Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

“From the US, the focus will be on the non-farm payrolls numbers… we expect the USD-INR (spot) to trade sideways and quote in the range of 83.05 and 83.40,” he 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 106.42.

Brent crude futures, the global oil benchmark, was 0.32 per cent up at USD 84.34 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 174.41 points or 0.27 per cent higher at 65,805.98 points. The broader NSE Nifty advanced 57.65 points or 0.29 per cent to 19,603.40 points.

Foreign institutional investors remained net sellers in the capital market on Thursday, offloading shares worth ₹1,864.20 crore, as per stock exchange data.

The rupee depreciated 4 paise to 83.24 against the US dollar in early trade on Wednesday, October 4, 2023, as the strength of the American currency and a weak trend in domestic equities exerted pressure on the local unit.

Forex traders said sustained foreign fund outflows further dented investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.22, then touched 83.24, registering a decline of 4 paise over its last close.

On Octber 3, the rupee had settled at 83.20 against the dollar.

“The USD/INR pair is currently encountering significant resistance at the 83.30 level on the upside while finding support at around 82.80 on the downside. This essentially confines the pair within a range-bound pattern,” CR Forex Advisors MD-Amit Pabari said.

However, it’s worth noting that if either of these key levels is breached, there could be a substantial movement of 80 to 90 paise in either direction, Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.14 per cent to 107.14.

Brent crude futures, the global oil benchmark, fell 0.11 per cent to USD 90.82 per barrel on tighter supply outlook.

In the domestic equity market, the 30-share BSE Sensex was trading 441.51 points or 0.67 per cent lower at 65,070.59. The broader NSE Nifty declined 126.95 points or 0.65 per cent to 19,401.80.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹2,034.14 crore, according to exchange data.

The rupee continued its downward movement for the second straight day and fell by 8 paise to 83.21 against the US dollar in early trade on Tuesday, September 26, 2023 amid massive selling by foreign equity investors and a firm American currency.

Subdued equity market sentiment and elevated level of crude oil prices ¬ hovering above USD 92 a barrel ¬ also put downside pressure on the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.19 and hit the lowest level of 83.23 against the greenback. It later traded at 83.21 against the dollar, registering a fall of 8 paise from its previous close.

On Monday, the rupee declined by 19 paise to close at 83.13 against the dollar.

Analysts attributed the downward movement of the rupee to a strengthening dollar amid increased month-end demand of the American currency by importers and rising US Treasury yield.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05 per cent to 106.07.

Brent crude futures, the global oil benchmark, was trading 0.45 per cent to USD 92.87 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 15.76 points or 0.02 per cent lower at 66,007.93 points. The broader NSE Nifty declined 10.55 points or 0.05 per cent to 19,664.00.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹2,333.03 crore, according to exchange data.

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

The rupee consolidated in a narrow range and settled 5 paise higher at 83.06 (provisional) against the U.S. dollar on September 21 as crude oil price receded from its elevated level.

The rupee was also weighed down by a rising dollar index, following hawkish comments from U.S. Federal Reserve officials, forex traders said.

Moreover, investors remained cautious ahead of the Bank of England and Bank of Japan policy decisions, they added.

At the interbank foreign exchange market, the rupee opened at 83.16 against the U.S. dollar and settled at 83.06 (provisional), registering a rise of 5 paise from its previous close.

During the session, the domestic unit witnessed an intra-day high of 83.02 and a low of 83.17.

In the previous session, the rupee staged a sharp rebound from its lifetime low levels and surged by 21 paise to close at 83.11 against the U.S. dollar.

“Indian rupee headed south after a flat opening amid a hawkish signal from FOMC, which dragged the global risk-assets lower,” said Dilip Parmar, Research Analyst, HDFC Securities.

However, the rupee managed to end the session with minor losses supported by the retracement in the crude oil prices and probable central bank interventions, Mr. Parmar added.

Market participants are in a wait-and-watch mode ahead of the Bank of England and Bank of Japan policy decision, he said.

“The dollar is expected to bode well amid policy divergence and a better U.S. macro environment compared to other developing nations,” he said.

The trend for $/₹remains bullish, following broad-based strength in the greenback. The pair has resistance at 83.30 and support at 82.90, he added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18% to 105.51.

Brent crude futures, the global oil benchmark, fell 1.05% to $92.55 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 570.60 points or 0.85% lower at 66,230.24. The broader NSE Nifty declined 159.05 points or 0.8% to 19,742.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹3,110.69 crore, according to exchange data.

A forex dealer in Bombay looks at a graph of the Indian rupee.
| Photo Credit: Reuters

The rupee witnessed a range-bound trading against the US dollar in early trade on Thursday, September 21, 2023 weighed down by a negative trend in domestic equities and a strong American currency

Forex traders said the Indian rupee was weighed down by a rising dollar index, following hawkish comments from Federal Reserve officials.

At the interbank foreign exchange, the rupee opened at 83.16 against the dollar, registering a fall of 5 paise over its previous close. The domestic unit also touched 83.08 against the American currency in initial trade.

On Wednesday, the rupee staged a sharp rebound from its lifetime low levels and surged by 21 paise to close at 83.11 against the US dollar.

“After a hawkish FED, not ruling out one hike in 2023 due to sticky inflation and keeping interest rates fall in 2024 by a smaller than expected margin, the comments boded poorly for Asian markets given that it tightens monetary conditions and limits flow of foreign capital in the region,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

The FOMC also stressed that the long-term projections are inherently uncertain and subject to change as the financial atmosphere is highly dynamic and contains numerous potential risks that could influence future outcomes, Bhansali said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to 105.55.

Brent crude futures, the global oil benchmark, declined 0.66 per cent to USD 92.91 per barrel.

In the domestic equity market, the 30-share BSE Sensex declined 306.96 points or 0.46 per cent to 66,493.88. The broader NSE Nifty fell 82.95 points or 0.42 per cent to 19,818.45.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹3,110.69 crore, according to exchange data.

Indian Rupee notes are seen in this picture illustration.
| Photo Credit: REUTERS

The rupee depreciated 6 paise to 82.81 against the US dollar in early trade on Tuesday, August 8, 2023 as a negative trend in domestic equities and firm crude oil prices weighed on investor sentiments.

Forex traders said the rupee is trading lower on strong dollar and foreign fund outflows over the past few days.

At the interbank foreign exchange, the domestic unit opened at 82.80, then touched 82.81, registering a decline of 6 paise over its last close as the RBI monetary policy committee meeting begins on Tuesday. The policy decision will be announced on Thursday.

On Monday, the rupee had settled 6 paise higher at 82.75 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.28 per cent to 102.33.

Brent crude futures, the global oil benchmark, rose 0.12 per cent to USD 85.44 per barrel.

Rupee is trading in a narrow range and volatility remained low ahead of the RBI policy statement that is scheduled to release later this week, traders said.

Expectation is that the central bank could keep rates on hold but commentary will trigger volatility for the currency, said Gaurang Somaiya Forex and Bullion Analyst at Motilal Oswal Financial Services.

Comments on inflation will be importantly watched and that could provide cues to the rupee, Somaiya added.

On the other hand, the dollar too traded in a range following lack of cues from the US.

“Today, focus will be on the trade balance number from the US; better-than-expected data could support the dollar at lower levels. We expect the USDINR(Spot) to trade sideways and quote in the range of 82.50 and 82.90,” Somaiya added.

In the domestic equity market, the 30-share BSE Sensex was trading 65.93 points or 0.10 per cent lower at 65,887.55. The broader NSE Nifty declined 14.10 points or 0.07 per cent to 19,583.20.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹1,892.77 crore, according to exchange data.