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.

The rupee recovered from its all-time low levels and appreciated by 9 paise to 82.99 against the U.S. dollar in early trade on August 16 as crude oil price retracted from its elevated levels.
| Photo Credit: Reuters

The rupee recovered from its all-time low levels and appreciated by 9 paise to 82.99 against the U.S. dollar in early trade on August 16 as crude oil price retracted from its elevated levels.

However, a muted trend in domestic equities and the strength of the American currency in the overseas market dented investor sentiments, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.10, then touched a high of 82.99 against the American currency, registering a rise of 9 paise over its last close.

On August 14, the rupee depreciated 26 paise to settle at an all-time low of 83.08 against the U.S. dollar.

Forex market was closed on August 15 and August 16 on account of Independence Day and Parsi New Year, respectively.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.12% to 103.55.

“The dollar index rose above 103 levels following safe haven buying on the back of rising uncertainty and after hawkish FOMC meeting minutes that showed officials were keen on raising rates further as inflation persists.

“Today, the focus will be on the Philadelphia Fed manufacturing index number from the U.S. We expect the USDINR(Spot) to trade sideways and quote in the range of 83.05 and 83.50,” said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services.

Brent crude futures, the global oil benchmark, rose 0.12% to $83.55 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 120.71 points or 0.18% lower at 65,418.71. The broader NSE Nifty declined 43.55 points or 0.22% to 19,421.45.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on August 16 as they purchased shares worth ₹722.76 crore, according to exchange data.