At the interbank foreign exchange market, the local unit opened at 83.56 and gained further ground to trade at 83.49 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level. File
| Photo Credit: V.V. Krishnan

The rupee appreciated 8 paise to 83.49 against the U.S. dollar in early trade on June 27, as crude oil prices retreated from their elevated levels.

Forex traders said the strength of the American currency in the overseas market and foreign fund outflows weighed on the local unit and restricted the upmove.

At the interbank foreign exchange market, the local unit opened at 83.56 and gained further ground to trade at 83.49 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level.

On June 26, the rupee depreciated 14 paise against the U.S. dollar and settled at 83.57.

“Stronger fundamentals such as stable inflation, accelerated economic growth, higher business activity, and a controlled Current Account Deficit offer a counterbalance supporting the rupee. Additionally, continuous RBI intervention has also helped prevent significant rupee depreciation,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.10% at 105.94.

Brent crude futures, the global oil benchmark, were trading 0.20% lower at $85.08 per barrel.

Brent oil prices slid after U.S. inventory build-up fuelled fears about a slow demand from the U.S. Worries about a potential expansion of Gaza Hostilities disrupting Middle East supplies capped the decline, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

In the domestic equity market, the 30-share BSE Sensex declined 38.81 points, or 0.05%, to 78,635.44 points. The broader NSE Nifty fell 15.20 points, or 0.06%, to 23,853.60 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on June 26, as they offloaded shares worth ₹3,535.43 crore, according to exchange data.

Representational image.
| Photo Credit: The Hindu

The Rupee recovered from its all-time low levels and appreciated by seven paise to 83.06 against the U.S. dollar in early trade on August 22, as the American currency retreated from its elevated levels.

Forex traders said the Rupee is trading in a narrow range as selling pressure by foreign investors dented sentiments, while the weak tone in the U.S. dollar and positive domestic markets cushioned the downside.

At the interbank foreign exchange, the domestic unit opened at 83.07, then touched a high of 83.06 against the American currency, registering a rise of seven paise over its last close. On Monday, the Rupee depreciated by three paise and settled for the day at an all-time low of 83.13 against the U.S. dollar.

“Rupee in the last one week has witnessed quite a bit of action but in the last couple of sessions it is consolidating in a narrow range and volatility has been low,” said Gaurang Somaiya forex and bullion analyst, Motilal Oswal Financial services.

Mr. Somaiya further added that the U.S. dollar too is retracing from higher levels after witnessing its longest winning streak in the last 15 months as it closed for the straight six weeks following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the U.S.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.12% to 103.17. Brent crude futures, the global oil benchmark, fell 0.17% to $84.32 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 127.81 points or 0.20% higher at 65,343.90. The broader NSE Nifty advanced 41.90 points or 0.22% to 19,435.50.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹1,901.10 crore, according to exchange data.