The Rupee appreciated six paise to close at 83.31 against the U.S. dollar on May 21 following a weak greenback against major currencies overseas and softening crude oil prices in international markets.

“However, a sluggish trend in the domestic equity markets restricted the sharp upside in the local currency,” forex traders said.

At the interbank foreign exchange market, the local unit opened strong at 83.32 and touched an intraday high of 83.26 and a low of 83.36. The domestic unit finally settled at 83.31 (provisional), a gain of six paise from its previous close. On May 17, the Rupee had settled at 83.37 against the U.S. dollar.

The forex market was closed on May 20 on account of general elections. “A decline in crude oil prices and fresh foreign inflows also supported the rupee. “The U.S. Dollar softened on rate cut expectations by Fed but hawkish comments by Fed officials supported the U.S. dollar at lower levels,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas,” said.

On the domestic equity market front, the 30-share BSE Sensex fell 52.63 points or 0.07% to settle at 73,953.31, while the broader NSE Nifty rose 27.05 points or 0.12% to 22,529.05.

“The Rupee traded positively. This strength is attributed to predictions of the current government winning the general election, leading to increased stability.

“Additionally, Domestic Institutional Investors (DIIs) have been actively buying into capital markets. Soft crude prices and a stable dollar index also supported the Rupee. The expected range for the Rupee in the upcoming sessions is between 83.00 and 83.50,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.

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

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 104.38. Brent crude futures, the global oil benchmark, declined 0.97% to $82.90 per barrel.

At the interbank foreign exchange market, the local unit opened at 83.50 and touched an intraday high of 83.32 and a low of 83.50.
| Photo Credit: The Hindu

Rupee appreciated 17 paise to close at 83.33 (provisional) against the U.S. dollar on May 17, on positive domestic markets and expectations of some fresh foreign inflows.

“Reports of selling of U.S. dollars by the Reserve Bank of India also supported the Rupee,” forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.50 and touched an intraday high of 83.32 and a low of 83.50. The domestic unit finally settled at 83.33 (provisional), a rise of 17 paise from its previous close. On May 16, the Rupee had settled at 83.50 against the U.S. dollar.

“We expect the Rupee to trade with a slight negative bias on strengthening of the U.S. dollar amid hawkish Fed speak and weak Asian and European markets. However, a positive tone in domestic markets may support the Rupee at lower levels.

“Any fresh FII inflows and/or RBI intervention may support Rupee at lower levels. USD-INR spot price is expected to trade in a range of ₹83.20 to ₹83.70,” said Anuj Choudhary — Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.73, higher by 0.26%. Brent crude futures, the global oil benchmark, rose 0.13% to $83.38 per barrel.

On the domestic equity market, the 30-share BSE Sensex advanced 253.31 points or 0.34% to close at 73,917.03 points. The broader NSE Nifty settled 62.25 points or 0.28%, higher at 22,466.10 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 16, as they offloaded shares worth ₹776.49 crore, according to exchange data.

Rupee finally settled at 83.50 (provisional), higher by one paisa from its previous close.
| Photo Credit: Reuters

The Rupee inched up one paisa to settle at 83.50 (provisional) against the U.S. dollar on May 15 as the American currency retreated from its elevated level. However, sustained foreign fund outflows and a weak trend in domestic equities weighed on the local unit.

With foreign investors buying the U.S. dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias, according to forex traders.

At the interbank foreign exchange market, the local unit opened at 83.49. During the session, it traded in a narrow range of 83.51-83.47. The domestic unit finally settled at 83.50 (provisional), higher by one paisa from its previous close.

The Rupee gained on weakness in the U.S. Dollar. However, weak domestic markets and FII selling capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

“We expect the Rupee to trade with a slight negative bias on the weak U.S. Dollar and expectations that the U.S. Dollar may rise again if inflation remains sticky and retail sales jumps,” Mr. Choudhary said, adding that FII outflows and a rise in crude oil prices may also weigh on the Rupee.

“Traders may take cues from India’s trade balance data and CPI and retail sales data from the U.S. USD-INR spot price is expected to trade in a range of ₹83.30 to ₹83.80,” Mr. Choudhary said.

India’s merchandise exports in April 2024 marginally rose to $34.99 billion from $34.62 billion in the year-ago month, according to government data released on May 15.

Imports too increased to $54.09 billion from $49.06 billion in April 2023. The trade deficit, or the gap between imports and exports, during the month stood at $19.1 billion.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.85, lower by 0.15%, as Fed Chair, Jerome Powell dismissed the hot PPI data as not so hot after March’s reading was revised lower. Brent crude futures, the global oil benchmark, rose 0.18% to $82.53 per barrel.

On the domestic equity market, the 30-share BSE Sensex declined 117.58 points or 0.16% to close at 72,987.03 points. The broader NSE Nifty settled 17.30 points or 0.08% lower, at 22,200.55 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 14, as they offloaded shares worth ₹4,065.52 crore, according to exchange data.

On the macroeconomic front, wholesale inflation rose to a 13-month high of 1.26% in April fuelled by rising prices of food articles, especially vegetables, amid expectations of RBI holding interest rates in the policy review next month.

Meanwhile, Moody’s Ratings on Tuesday said the Indian economy is projected to expand 6.6% in the current fiscal year and said strong credit demand fuelled by robust economic growth will support the NBFC sector’s profitability.

On May 10, the Rupee closed at 83.51 against the American currency.
| Photo Credit: The Hindu

The Rupee was trading in a narrow range against the U.S. dollar in early trade on May 13, tracking a weak trend in domestic equities and strong American currency.

Forex traders said with foreign investors buying U.S. dollars and the Reserve Bank of India (RBI) selling the greenback, the USD/INR pair is expected to remain range-bound with a bit of a weakness bias.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.51 against the American currency and touched 83.52 in initial trade, registering a fall of 1 paisa from its previous close. On Friday, the Rupee closed at 83.51 against the American currency.

“Despite short-term pressures on the Rupee, major global factors such as the Israel-Iran conflict and oil prices are normalising. Consequently, considering internal factors such as the Lok Sabha elections passing, the Rupee is poised to align with its robust fundamentals,” CR Forex Advisors MD-Amit Pabari said.

“The downside risk for the Rupee is limited at 83.60. It is anticipated to appreciate to levels between 83 and 83.20 in the near term, with medium-term appreciation ranging from 82.80 to 82.50,” Mr. Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.32, higher by 0.02%. Brent crude futures, the global oil benchmark, fell 0.31% to $82.53 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 414.63 points, or 0.57% lower at 72,249.84 points. The broader NSE Nifty was down 105.60 points or 0.48% to 21,949.60 points.

“Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 10 as they offloaded shares worth ₹2,117.50 crore, according to exchange data. Meanwhile, after three consecutive weeks of drop, India’s forex reserves increased by $3.668 billion to $641.59 billion in the week ended May 3,” the RBI said on Friday.

The overall kitty dropped ₹2.412 billion to ₹637.922 billion for the previous week ended April 26.

Rupee hit an intra-day high of 83.47 and a low of 83.52 against the greenback.
| Photo Credit: The Hindu

The Rupee consolidated in a narrow range and settled higher by one paisa at 83.51 against the U.S. dollar on May 7, amid a negative trend in domestic equities and strong dollar demand.

Forex traders said elevated significant foreign fund outflows in the international market dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.48 against the greenback. The unit hit an intra-day high of 83.47 and a low of 83.52 against the greenback.

The domestic unit finally settled at 83.51 (provisional) against the dollar, one paisa higher than its previous close. On Monday, the Rupee settled seven paise lower at 83.52 against the U.S. dollar.

“The Indian Rupee traded almost flat on weak domestic markets and positive U.S. Dollar. FII outflows also weighed on the Rupee,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

However, a soft tone in crude oil prices cushioned the downside. The U.S. Dollar gained on weak Asian currencies after the Australian Dollar fell amid a less-hawkish-than-expected tone of the Reserve Bank of Australia (RBA).

“We expect the Rupee to trade with a slight negative bias on weak domestic markets and positive dollar amid geopolitical tensions in the Middle East.”

“However, softness in crude oil prices and positive European and Asian markets may support the Rupee at lower levels. Any intervention by the Reserve Bank of India (RBI) may also support the domestic currency. USD-INR spot price is expected to trade in a range of ₹83.30 to ₹83.75,” Mr. Choudhary added.

Brent crude futures, the global oil benchmark, fell 0.10% to $83.25 per barrel. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.26, higher by 0.20%.

On the domestic equity market front, Sensex declined 383.69 points or 0.52% to settle at 73,511.85 points. The Nifty fell 140.20 points or 0.62% to close at 22,302.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹2,168.75 crore, according to exchange data.

The Rupee had settled seven paise lower at 83.45 against the U.S. dollar on April 29.
| Photo Credit: The Hindu

The Rupee recovered four paise to 83.41 (provisional) against the U.S. dollar on April 29, tracking foreign capital inflows and a strengthening greenback against major crosses overseal.

According to forex analysts, the domestic currency initially faced resistance from a strong greenback and upward momentum in the crude oil prices but recovered the lost ground during the session on the back of a sharp rally in equities in the late afternoon trade.

At the interbank foreign exchange market, the local unit opened at 83.46 and traded between 83.41 and 83.52 against the greenback during the session.

The domestic currency finally settled at 83.41 (provisional) against the dollar, registering a gain of four paise from its previous closing level.

The Rupee had settled seven paise lower at 83.45 against the U.S. dollar on Monday after losing 10 paise in the preceding session on April 26.

Jateen Trivedi, V-P Research Analyst, Commodity and Currency, LKP Securities, said: “Volatility in the capital market kept the Rupee range-bound. Participants are closely monitoring the upcoming interest rate decision in the U.S. for potential price action in the Rupee. Weakness persists in the Rupee, albeit in a stable manner”.

Analysts also said that investors moved cautiously ahead of the U.S. Federal Reserve’s interest rate decision and upcoming macroeconomic data from the U.S. and the domestic manufacturing growth numbers.

The Federal Open Market Committee (FOMC) meeting begins on Tuesday and the interest rate decision is expected to be announced on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.13% to 105.58. Brent crude futures, the global oil benchmark, rose 0.15% to $88.53 per barrel.

On the domestic equity market front, Sensex declined 188.50 points or 0.25% to settle at 74,482.78 and Nifty fell 38.55 points or 0.17% to close at 22,604.85.

Foreign institutional investors (FIIs) were net buyers in the capital markets on April 29, as they purchased shares worth ₹169.09 crore on a net basis, according to exchange data.

Representational image only.
| Photo Credit: The Hindu

The Rupee declined seven paise to close at 83.35 (provisional) against the U.S. dollar on April 26 as a strengthening American currency overseas and a selloff in domestic equities weighed on the local unit.

“Besides, rising crude prices in the international market and risk-averse sentiment dragged the local unit down,” forex traders said.

At the interbank foreign exchange market, the local unit opened strong at 83.30 and moved in the range of 83.30-83.36 during the session. The local currency finally settled at 83.35 (provisional) against the dollar, registering a fall of seven paise from its previous close. In the previous session, the Rupee closed at 83.28 against the U.S. dollar.

“Indian Rupee declined slightly on weak domestic markets and a surge in crude oil prices. We expect the Rupee to trade slightly weak on renewed geopolitical tensions in the Middle East and weakness in domestic equities. Rising crude oil prices and FII outflows may further put pressure on the Rupee. However, any intervention by the RBI may support the Rupee at lower levels. We expect USD-INR to trade in the range of 83.10-83.60,” Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said.

Brent crude futures, the global oil benchmark, rose 0.38% to $89.35 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, increased 0.05% to 105.49. On the domestic equity market front, Sensex slumped 609.28 points, or 0.82% to settle at 73,730.16, and Nifty declined 150.40 points, or 0.67% to close at 22,419.95.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹2,823.33 crore, according to exchange data.

On April 25, the Rupee had settled at 83.28 against the dollar.
| Photo Credit: The Hindu

The Rupee depreciated five paise to 83.33 against the U.S. dollar in early trade on April 26, tracking a strong greenback overseas and a positive trend in domestic equities.

“However, elevated crude prices in international markets and unabated foreign capital outflows capped the gains in domestic unit,” forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 83.30 against the dollar and then further slipped to 83.33, registering a fall of five paise over its previous close.

In the initial trade, the domestic unit was moving in a tight range of 83.35-83.30 against the American currency. In the previous session on April 25, the Rupee had settled at 83.28 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09% to 105.54.

Brent crude futures, the global oil benchmark, rose 0.35% to $89.32 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 103.64 points or 0.14% higher at 74,443.08.

The broader NSE Nifty advanced 32.45 points or 0.14% to 22,602.80. Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹2,823.33 crore, according to exchange data.

On April 24, Rupee consolidated in a narrow range and settled two paise lower at 83.33 against the U.S. dollar.
| Photo Credit: The Hindu

The Rupee depreciated six paise to 83.39 against the U.S. dollar in early trade on April 25, tracking a negative trend in domestic equities and elevated crude oil prices. Forex traders said the Rupee is expected to trade with a slight negative bias on sustained foreign fund outflows.

At the interbank foreign exchange, the Rupee opened at 83.34 against the dollar and touched an early low of 83.39 against the greenback, registering a decline of six paise over its previous close.

On April 24, the Rupee consolidated in a narrow range and settled two paise lower at 83.33 against the U.S. dollar.

Forex traders said the Rupee moved in a range-bound manner on Wednesday and is expected to be in a small range on Thursday also, as markets await U.S. GDP, U.S. Personal Consumption Expenditure (PCE) Prices Index and Bank of Japan meeting outcome.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.78, lower 0.07%. Brent crude futures, the global oil benchmark, rose 0.11% to $88.12 per barrel.

On the domestic equity market front, Sensex declined 12.44 points, or 0.02% to 73,840.50. The Nifty fell 11.75 points or 0.05% to 22,390.65.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹2,511.74 crore, according to exchange data.

At the interbank foreign exchange market, the local unit opened at 83.29, registering a gain of two paise from its previous close.
| Photo Credit: The Hindu

The Rupee was trading in a narrow range against the U.S. dollar in early trade on April 24, as the support from positive domestic equities was negated by strong American currency.

Forex traders said elevated crude oil prices and significant foreign fund outflows in the international market dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.29, registering a gain of two paise from its previous close. In initial trade, the local unit also saw a low of 83.32 against the American currency. On Tuesday, the Rupee closed at 83.31 against the American currency.

Forex traders said the Rupee to trade with a slight positive bias on improved global risk sentiments and easing of geopolitical tensions in the Middle East. However, any fresh aggressions in the Middle East may cap gains for the local unit.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.67, lower by 0.01%. Brent crude futures, the global oil benchmark, rose 0.07% to $88.48 per barrel.

“Brent oil prices inched up to $88.40 per barrel as U.S. crude stocks showed a surprise drop last week, which was a positive sign for demand, as attention shifted away from hostilities in the Middle East,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

“The Rupee is expected to see range-bound trade between 83.20 to 83.40 on Wednesday,” Mr. Bhansali added.

On the domestic equity market, the 30-share BSE Sensex was trading 173.24 points, or 0.23% higher at 73,911.69 points. The broader NSE Nifty was up 48.15 points, or 0.22% to 22,416.15 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹3,044.54 crore, according to exchange data.