A customer holds hundred rupees Indian currency notes near a roadside currency exchange stall in New Delhi.
| Photo Credit: REUTERS

The Indian rupee pared its initial gains and turned flat at 83.87 against the U.S. dollar in early trade on Tuesday (August 20, 2024), as positive domestic equity markets and a weak American currency were negated by the outflow of foreign capital.

Forex traders said softening crude oil prices supported the local unit and prevented its fall.

At the interbank foreign exchange, the rupee opened at 83.86 against the greenback, inched up to 83.84 before trading again at its previous session’s closing level of 83.87 against the dollar.

On Monday (August 19, 2024), the rupee settled 8 paise higher at 83.87 against the American currency.

Over the past holiday-shortened week, the rupee showed minimal fluctuation and narrowly steered clear of the critical of 84-mark.

Investors are expected to remain cautious ahead of PMI data from the U.S. and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole Symposium for any cues on rate cuts by the central bank.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.10% to 101.82.

Brent crude, the global oil benchmark, declined 0.68% to $77.13 per barrel.

On the domestic equity market front, Sensex advanced 188.93 points, or 0.23%, to 80,613.61 points. The Nifty rose 60.15 points, or 0.24%, to 24,632.80 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, offloading shares worth ₹2,667.46 crore, according to exchange data.

A customer holds a hundred rupees Indian currency notes near a roadside currency exchange stall in New Delhi.
| Photo Credit: REUTERS

The Indian rupee traded in a tight range appreciated 3 paise to 83.94 against the U.S. dollar in early trade on Tuesday (August 13, 2024) on positive domestic macroeconomic data.

However, a muted trend in domestic equities and foreign fund outflows capped the gains for the local unit.

At the interbank foreign exchange, the rupee opened at 83.95 against the greenback and traded in a tight range. In initial trade it touched 83.94, registering a gain of 3 paise over its previous close.

On Monday (August 12, 2024), the rupee settled for the day lower by 2 paise at 83.97 against the American currency.

Forex traders said market participants are treading cautiously amid a landscape fraught with geopolitical uncertainties and a consolidating U.S. Dollar.

However, the Indian rupee is trading in a narrow range and the stability is underpinned by several factors: a narrowing fiscal deficit, stable oil prices, stronger economic growth and the RBI’s substantial reserves of $675 billion, ready to be deployed if needed, 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 0.02% lower at 103.11.

Brent crude, the global oil benchmark, declined 0.74% to $81.69 per barrel.

Traders are awaiting data from the U.S. including the U.S. CPI data to gauge the FED outlook on interest rates, said Anil Kumar Bhansali, Head of Treasury and Executive DirectorFinrex Treasury Advisors LLP.

On the domestic macroeconomic front, India’s direct tax mop-up rose by 22.5% over last year. India’s IIP stood at 4.2% for June-24.

The retail inflation eased to 3.54% with food prices falling after a good monsoon. It was the lowest in the last five years and has dipped below RBIs targetted rate of 4%.

On the domestic equity market front, Sensex declined 100.17 points, or 0.13%, to 79,548.75 points. The Nifty fell 19.60 points, or 0.08%, to 24,327.40 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹4,680.51 crore, according to exchange data.

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

The rupee consolidated in a narrow range and settled for the day lower by 2 paise at 83.97 (provisional) against the American currency on Monday (August 12, 2024), as market participants remained on the sidelines ahead of the release of key domestic macroeconomic data.

Forex traders said the Indian rupee declined on a positive tone in the U.S. dollar and a surge in crude oil prices.

At the interbank foreign exchange market, the local unit opened at 83.95 and touched an intraday low of 83.98 and finally settled at 83.97 (provisional) against the American currency, lower by 2 paise from its previous close.

The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the U.S. dollar on August 5. On Friday (August 9, 2024), the rupee settled for the day higher by 2 paise at 83.95 against U.S. dollar.

“We expect the rupee to trade with a slight negative bias on strength in the U.S. dollar and rising global crude oil prices. Selling pressure from foreign investors and geopolitical tensions in the Middle East may further pressurise the rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Forex traders said for the USD/INR pair 84.00 level is acting as a psychological resistance. Market participants are also awaiting cues from the Indian CPI inflation and IIP numbers scheduled to be released later in the day.

Moreover, investors may remain cautious ahead of U.S. CPI, retail sales and consumer confidence data from the US this week. “USD-INR spot price is expected to trade in a range of ₹83.75 to ₹84.25,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% higher at 103.18.

Brent crude, the global oil benchmark, advanced 0.85% to $80.34 per barrel.

On the domestic equity market front, Sensex declined 56.99 points, or 0.07%, to 79,648.92 points. The Nifty fell 20.50 points, or 0.08%, to 24,347.00 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹406.72 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped by $7.533 billion to a new record high of $674.919 billion during the week ended August 2, the Reserve Bank said on Friday.

At the interbank currency exchange, the domestic currency opened at 83.72, 1 paisa higher than the previous day’s close.
| Photo Credit: Reuters

The rupee rose 2 paise to 83.71 against the U.S. currency in early trade on July 31 following a marginal dip in the dollar in overseas markets.

At the interbank currency exchange, the domestic currency opened at 83.72, 1 paisa higher than the previous day’s close.

The domestic unit moved in the tight range of 83.70-83.72 in early trade.

Forex traders said the rise in Brent crude oil prices offset the rupee’s gains following the decline in dollar rates overseas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.19% to 104.36.

Brent crude futures—the global oil benchmark—rose 1.49% to USD 79.80 per barrel.

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In the domestic equity market, the 30-share BSE Sensex showed volatility, rising over 200 points in early trade to reach a record high before trading at 81,517.75, up 62.35 points, at 9.35 a.m.

“Foreign institutional investors were net sellers in the capital markets on July 30, offloaded shares worth ₹5,598.64 crore,” according to exchange data.

In the domestic equity market, the 30-share BSE Sensex hit an all-time high, rising 355.7 points or 0.44%, to 81,688.42 in early trade on July 29.
| Photo Credit: Reuters

The rupee appreciated by 2 paise to trade at 83.72 against the U.S. dollar in the early session on July 29 amid a weak dollar in the overseas markets.

At the interbank foreign exchange market, the rupee opened firm at 83.70 against the U.S. dollar. The local currency moved in a tight range of 83.70 to 83.72 in early trade.

The rupee was trading at 83.72 against the U.S. dollar at 9.30 a.m.

“Foreign fund outflows from Indian equities after the Government’s decision to hike the tax rate on capital gains weighed on the local currency and restricted the up move,” Forex traders said.

The domestic currency had recovered from its all-time low by 5 paise to settle at 83.73 against the U.S. dollar on July 26, on the strength in domestic markets and expectations of fresh foreign inflows.

In the domestic equity market, the 30-share BSE Sensex hit an all-time high, rising 355.7 points or 0.44%, to 81,688.42 in early trade on July 29.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.23, marginally down by 0.08%. Brent crude futures — the global oil benchmark — rose 0.24, or 0.3 %, to USD 81.37 per barrel.

“India’s forex reserves had jumped USD 4 billion to reach an all-time high of USD 670.857 billion for the week ended on July 19,” according to the Reserve Bank data released on July 26.

“Foreign institutional investors (FIIs) were net buyers in the capital markets on July 26 as they purchased shares worth ₹2,546.38 crore,” according to exchange data.

Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi.
| Photo Credit: REUTERS

The rupee traded in a narrow range and appreciated 2 paise to 83.49 against the U.S. dollar in early trade on July 11, as a positive trend in domestic equities supported the local unit, while elevated crude oil prices weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.49, registering a rise of 2 paise from its previous close.

On July 10, the rupee stayed range-bound and settled 2 paise lower at 83.51 against the U.S. dollar.

“Persistent demand for the dollar from local importers has capped the rupee’s potential gains, yet its outlook remains optimistic, buoyed by recent positive economic indicators,” CR Forex Advisors MD-Amit Pabari said.

Mr. Pabari further said the rupee’s outlook is supported by strong foreign inflows, a positive economic forecast, and India’s impressive macroeconomic growth, currently the fastest among large economies.

The Reserve Bank of India (RBI) appears determined to prevent the rupee from depreciating below 83.70, despite pressure from oil companies due to elevated oil prices, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.93, lower by 0.11 per cent.

Brent crude futures, the global oil benchmark, advanced 0.76 per cent to USD 85.73 per barrel.

On the domestic equity market front, the 30-share BSE Sensex rose 105.32 points, or 0.13 per cent, to 80,030.09 points. The broader NSE Nifty advanced 21.60 points, or 0.09 per cent, to 24,346.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 583.96 crore, according to exchange data.

Image for representational purposes only.
| Photo Credit: REUTERS

The rupee was trading in a narrow range against the U.S. dollar in early trade on May 10, as the support from positive domestic equities was negated by elevated crude oil prices.

Forex traders said the strength of the American currency in the overseas market and significant foreign fund outflows dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.48, it touched 83.46 in the initial trade, registering a gain of 2 paise from its previous close.

On May 9, the rupee closed at 83.48 against the American currency.

“The Indian Rupee was again sold-off on May 9 as FPIs outflows continued to trigger demand for the U.S. dollar, while probable RBI selling at 83.50 did not allow a higher up move on the USD/INR pair. On May 10 also the same is expected from the USD/INR pair with RBI continuing its control at 83.50,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.30, higher by 0.07%.

Brent crude futures, the global oil benchmark, rose 0.5% to $84.34 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 169.82 points, or 0.23% higher at 72,573.99 points. The broader NSE Nifty was up 67.05 points, or 0.31%, to 22,024.55 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 9 as they offloaded shares worth ₹6,994.86 crore, according to exchange data.

“FPIs offloaded ₹22,858 crore in six market sessions in May 2024, while DIIs (Domestic Institutional Investors) were buyers to the tune of ₹16,700 crore. Uncertainty in election results and higher U.S. treasury yields were the main causes of this sell-off,” Mr. Bhansali added.

The rupee was trading in a narrow range against the U.S. dollar in early trade on May 8.
| Photo Credit: REUTERS

The rupee was trading in a narrow range against the U.S. dollar in early trade on May 8, amid a negative trend in domestic equities and strong American currency.

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

At the interbank foreign exchange market, the local unit opened at 83.50, and touched 83.49 in initial trade, registering a gain of 2 paise from its previous close.

On May 7, the rupee closed at 83.51 against the American currency.

Forex traders easing crude oil prices supported the rupee and restricted the downside.

“Demand for dollars from foreign investors kept the rupee down on May 7 and though May 8th’s opening looks to be flat, the demand should continue. Selling by the Reserve Bank of India (RBI) could keep it range-bound.

“Importers are expected to adopt ‘wait and watch’ approach with a stop loss on breach of 83.60,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.55, higher by 0.14%.

Brent crude futures, the global oil benchmark, fell 0.43% to $82.80 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 256.62 points, or 0.35% lower at 73,255.23 points. The broader NSE Nifty was down 60 points, or 0.27%, to 22,242.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 7 as they offloaded shares worth ₹3,668.84 crore, according to exchange data.

The rupee strengthened by 6 paise to 83.26 against the U.S. dollar in early trade on September 20 on easing global crude oil prices and rising appetite for riskier assets.

However, a sell-off in the domestic equity markets and a strong American currency against major rivals overseas restricted the rupee’s rise, traders said.

At the interbank foreign exchange, the domestic unit opened at 83.22 against the dollar and then slipped to 83.26, registering a gain of 6 paise over its previous close.

In the initial trade, the domestic unit was moving in a tight range of 83.27-83.22 against the American currency.

In the previous session on September 18, the rupee had settled at an all-time low of 83.32 against the dollar.

Currency markets were closed on September 19 on account of Ganesh Chaturthi.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was almost unchanged at 104.83.

Brent crude futures, the global oil benchmark, fell 1% to $93.40 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 307.27 points or 0.45% lower at 67,289.57. The broader NSE Nifty declined 100.75 points or 0.5% to 20,032.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on September 18 as they sold shares worth ₹1,236.51 crore, according to exchange data.