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).

The rupee fell 4 paise to 83.48 against the US dollar on Thursday, June 20, 2024, due to firm American currency and an upward trend in crude oil prices overseas.

The local unit resisted the fall amid the unabated inflow of foreign capital but gave in to the pressure due to a muted trend in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.43 and lost further to 83.48 against the greenback, registering a fall of 4 paise from its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.44 against the US dollar. “The local currency’s upward momentum was halted by a strong US dollar and rising crude oil prices in the international market,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.02 per cent at 104.90.

Brent crude futures, the global oil benchmark, advanced 0.02 per cent to USD 85.09 per barrel.

In the domestic equity markets, the 30-share BSE Sensex fell 72.43 points, or 0.09 per cent, to 77,265.16 points. The broader NSE Nifty declined 30.25 points, or 0.13 per cent, to 23,485.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth ₹7,908.36 crore, according to exchange data.

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.

The rupee inched up 1 paisa against the US dollar in early trade on Tuesday, October 31, 2023, as the support from positive domestic equities was negated by elevated crude oil prices and a strong American currency overseas.

Forex traders said the dollar strengthened on safe-haven demand. However, a positive trend in domestic equities supported the rupee at lower levels.

At the interbank foreign exchange, the rupee was trading in a narrow range. The local unit opened at 83.26 against the dollar. It rose slightly to 83.25 against the greenback in initial trade, up 1 paisa from its previous close.

On Monday, the rupee traded on a flat note and settled 1 paisa lower at 83.26 against the US dollar.

“The Indian rupee keeps juggling between 83.15-83.30 levels amid overall pressure such as a stronger US DXY, higher US bond yields, surging oil prices amid Middle East tensions, and a shaky domestic equity market causing FPI outflow,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index advanced by 0.26 per cent to 106.39.

Brent crude futures, the global oil benchmark, were trading 0.41 per cent higher at USD 87.81 per barrel.

In the domestic equity market, the BSE Sensex advanced 48.80 points or 0.08 per cent to 64,161.45. The NSE Nifty was up 17.70 points or 0.09 per cent to 19,158.60.

According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,761.86 crore.

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

The rupee snapped its three-day rally and depreciated by 12 paise to 82.68 against the U.S. dollar in early trade on August 26 amid a firm American currency and subdued equity markets.

An upward movement in crude prices also weighed on the domestic currency even as the inflow of foreign funds capped the fall, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 82.60 and then tumbled to the lowest level of 82.69 against the greenback. It later traded at 82.68, registering a fall of 12 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.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services said, “Rupee fell after opening stronger against the U.S. dollar ahead of the Jackson Hole Symposium that begins today. Expectation is that the Fed Chairman could maintain a hawkish tone and that could extend gains for the greenback.”

Apart from U.S. Federal Reserve Chairman Jerome Powell’s statement at the Jackson Hole Symposium, market participants will keep an eye on the U.S. consumer sentiment index to be released on Friday.

“Better-than-expected economic data is likely to support the dollar. We expect the USDINR (Spot) to trade sideways and quote in the range of 82.30 and 82.80,” Mr. Somaiya said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 104.21.

Global oil benchmark Brent crude futures climbed 0.19% to $83.52 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 248.65 points or 0.38% lower at 65,003.69. The broader NSE Nifty declined 71.70 points or 0.37% to 19,315.00.

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