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.

The rupee continued its gaining momentum for the second consecutive day and appreciated 7 paise to settle at 83.18 (provisional) against the U.S. dollar on October 11 amid robust buying in domestic equities and a weak American currency overseas.

However, unabated withdrawal of funds by foreign institutional investors weighed on the domestic currency, Forex analysts said.

At the interbank foreign exchange, the rupee opened strong at 83.20 and traded between the intra-day peak of 83.15 and the lowest level of 83.24 against the greenback. The local unit finally settled at 83.18 (provisional), registering a gain of 7 paise from its previous close.

On October 10, the rupee settled 3 paise higher at 83.25 against the U.S. dollar.

According to Anuj Choudhary, research analyst at Sharekhan by BNP Paribas, the rupee is expected to trade with a slight positive bias on the rise in risk appetite in global markets and softness in the U.S. dollar amid dovish comments by U.S. Federal Reserve officials. However, geopolitical uncertainty due to the ongoing Israel-Hamas conflict may cap a sharp upside.

“Any upside reversal in crude oil prices and FII outflows may also weigh on the rupee at higher levels. Traders may remain cautious ahead of PPI data and FOMC minutes from the U.S. today and inflation data from India and the U.S. later this week. USD-INR spot price is expected to trade in a range of ₹82.80 to ₹83.50,” Mr. Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% lower at 105.73.

Brent crude futures, the global oil benchmark, declined 0.65% to $87.08 per barrel.

On the domestic equity market front, the BSE Sensex closed 393.69 points or 0.60% higher at 66,473.05. The broader NSE Nifty climbed 121.50 points or 0.62% to 19,811.35.

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.

Image for representational purpose only.
| Photo Credit: V.V. Krishnan

The rupee edged up 1 paisa to 83.21 against the U.S. currency in a restricted trade on September 28 amid gains in domestic equities.

The Indian currency was almost trading flat in the early session as gains from firm domestic stocks were offset by a rise in crude oil prices and the U.S. dollar index remaining above the 106-mark against the leading currencies, Forex dealers said.

The rupee opened flat at 83.22 against the U.S. dollar and later moved in a range of 83.25 to 83.20 in morning deals. It was trading at 83.21 to U.S. dollar at 9.35 a.m., up by 1 paisa over the previous close.

The domestic unit settled at 83.22 on September 27 after a listless trade.

It traded in a narrow range on Wednesday despite broader gains in the dollar against its major crosses, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

The hawkish tone in the recent Federal Reserve meeting has been confirmed by Fed officials in recent days, as they flagged the possibility that the central bank would need to raise interest rates further after pausing its rate-hiking cycle last week, he added.

Elevated U.S. yields have spelt trouble for the yen, which slipped to an 11-month low against the U.S. dollar.

“We expect the USD-INR (Spot) to trade sideways and quote in the range of 83.05 and 83.30,” Mr. Somaiya said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was flat at 106.67.

Brent crude, the global oil benchmark, was trading 0.75% higher at $97.27 per barrel.

On the domestic equity market front, the BSE Sensex climbed 287.32 points to 66,406.01 in early trade. Nifty advanced 50.2 points to 19,766.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹354.35 crore, according to exchange data.