Image for representation only
| Photo Credit: Reuters

The rupee depreciated 5 paise to 83.54 against the U.S. dollar in early trade on Thursday, weighed down by elevated crude oil prices.

Forex traders said a positive trend in domestic equities, wherein benchmark indices touched all-time high levels and significant foreign fund inflows supported the rupee and restricted the fall.

At the interbank foreign exchange market, the rupee opened at 83.52 and lost further ground to trade at 83.54 against the greenback in initial deals, registering a fall of 5 paise from its previous closing level.

On Wednesday, the rupee settled 1 paisa lower at 83.49 against the US dollar.

“Though the equity markets are shining bright, the Indian rupee has been trading flat to weaker, despite a drop in the dollar towards 105.04 and US 10-year yields touching 4.35 per cent, post the US service PMI data and ADP non-farm employment change data were weaker than expected,” CR Forex Advisors MD Amit Pabari said.

According to Pabari, crude oil prices have risen nearing USD 87 per barrel and this acted as a counterweight, limiting the rupee’s gains.

“However, stronger fundamentals, robust inflows, and equity markets at an all-time high are clashing with temporary external pressures. As these external factors dissipate, the Indian Rupee is poised to gain strength,” Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.36.

Brent crude futures, the global oil benchmark, declined 0.55 per cent to USD 86.86 per barrel.

In the domestic equity market, Sensex breached the historic 80,000-mark and Nifty scaled fresh lifetime highs in early trade. The BSE Sensex was trading 224.79 points, or 0.28 per cent higher at 80,211.59 points. The broader NSE Nifty advanced 67.80 points, or 0.28 per cent, to 24,354.30 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 5,483.63 crore, according to exchange data.

Meanwhile, according to an official of S&P Global Ratings, a sovereign rating upgrade for India in the next 24 months is possible if the central government is able to prudently manage its finances and bring down the fiscal deficit to 4 per cent of GDP.

S&P Global Ratings Director, Sovereign Ratings, YeeFarn Phua, said the trigger for an upgrade would be the government (Centre plus States) deficit falling below 7% of the GDP, and a lot of this would have to be driven by the central government.

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.

Image for representation
| Photo Credit: C. Venkatachalapathy

The rupee appreciated by 7 paise to 83.24 against the U.S. dollar on Wednesday amid softening crude oil prices in the international market.

Forex traders said the local unit faced some resistance due to subdued sentiment in the domestic equity market and foreign fund outflows.

At the interbank foreign exchange market, the local unit opened at 83.29 and inched up further to trade at 83.24 against the greenback, registering a gain of 7 paise from its previous closing level.

On Tuesday, the rupee appreciated 6 paise to close at 83.31 against the U.S. dollar.

“As the rupee seems to have started aligning with its fundamentals, in the short term, one can expect the Rupee to approach levels of 83.00 to 83.10, while the medium-term target is projected to range between 82.80 to 82.50 levels,” 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 at 104.63, lower by 0.02%.

Brent crude futures, the global oil benchmark, declined 0.65% to $82.34 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 37.12 points, or 0.05% lower at 73,916.19 points. The broader NSE Nifty was down 30.40 points, or 0.13%, to 22,498.65 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹1,874.54 crore, according to exchange data.

On the macroeconomic front, according to an article in the RBI’s May Bulletin released on Tuesday, India is likely to grow by 7.5% in the first quarter of the current financial year, driven by rising aggregate demand and non-food spending in the rural economy.

A currency trader is pictured through the symbol for the Indian Rupee on the floor of a trading firm in Mumbai. Image for representation
| Photo Credit: REUTERS

The rupee appreciated by 6 paise to 83.31 against the U.S. dollar on Tuesday amid softening crude oil prices in the international market.

Forex traders said, however, the local unit faced some resistance due to subdued sentiment in the domestic equity market and a stronger American currency.

At the interbank foreign exchange market, the local unit opened strong at 83.32 and inched up further to trade at 83.31 against the greenback, registering a gain of 6 paise from its previous closing level.

On Friday, the rupee had settled 13 paise higher at 83.37 against the U.S. dollar. The forex markets were closed on Monday on account of general elections.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.57, higher by 0.11%.

Analysts attributed the strengthening dollar to higher U.S. treasury yields even as the Federal Reserve has indicated that it needs more time to assess the progress on inflation.

Brent crude futures, the global oil benchmark, declined 0.54% to $83.26 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 71.18 points, or 0.10% lower at 73,934.76 points. The broader NSE Nifty was down 12.00 points, or 0.05%, to 22,490.00 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets during a special trading session on Saturday, as they offloaded shares worth ₹92.95 crore, according to exchange data.