The rupee fell 4 paise to 83.48 against the US dollar on Thursday, June 20, 2024, due to firm American currency and an upward trend in crude oil prices overseas.

The local unit resisted the fall amid the unabated inflow of foreign capital but gave in to the pressure due to a muted trend in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.43 and lost further to 83.48 against the greenback, registering a fall of 4 paise from its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.44 against the US dollar. “The local currency’s upward momentum was halted by a strong US dollar and rising crude oil prices in the international market,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.02 per cent at 104.90.

Brent crude futures, the global oil benchmark, advanced 0.02 per cent to USD 85.09 per barrel.

In the domestic equity markets, the 30-share BSE Sensex fell 72.43 points, or 0.09 per cent, to 77,265.16 points. The broader NSE Nifty declined 30.25 points, or 0.13 per cent, to 23,485.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth ₹7,908.36 crore, according to exchange data.

The rupee inched up 1 paisa against the US dollar in early trade on Tuesday, October 31, 2023, as the support from positive domestic equities was negated by elevated crude oil prices and a strong American currency overseas.

Forex traders said the dollar strengthened on safe-haven demand. However, a positive trend in domestic equities supported the rupee at lower levels.

At the interbank foreign exchange, the rupee was trading in a narrow range. The local unit opened at 83.26 against the dollar. It rose slightly to 83.25 against the greenback in initial trade, up 1 paisa from its previous close.

On Monday, the rupee traded on a flat note and settled 1 paisa lower at 83.26 against the US dollar.

“The Indian rupee keeps juggling between 83.15-83.30 levels amid overall pressure such as a stronger US DXY, higher US bond yields, surging oil prices amid Middle East tensions, and a shaky domestic equity market causing FPI outflow,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index advanced by 0.26 per cent to 106.39.

Brent crude futures, the global oil benchmark, were trading 0.41 per cent higher at USD 87.81 per barrel.

In the domestic equity market, the BSE Sensex advanced 48.80 points or 0.08 per cent to 64,161.45. The NSE Nifty was up 17.70 points or 0.09 per cent to 19,158.60.

According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,761.86 crore.

According to an analyst, the rupee traded within a narrow range even after more updates came in on the escalating conflict in Israel. File photo
| Photo Credit: S.R. Raghunathan

The rupee appreciated 3 paise to 83.22 against the US dollar on Wednesday, October 11, 2023, tracking cues from positive equity markets and a weaker American currency against major rivals overseas.

However, selling pressure from foreign equity investors weighed on the Indian currency, forex traders said.

At the interbank foreign exchange, the rupee opened at 83.20 and then touched 83.22 against the greenback, up 3 paise from its previous close.

On Tuesday, the rupee settled at 83.25 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 105.77.

Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said the rupee traded within a narrow range even after more updates came in on the escalating conflict in Israel.

According to him, traders are expected to remain watchful of the US Federal Open Market Committee (FOMC) minutes that may indicate more interest rate hikes, adding strength to dollar.

“We expect the USD-INR (spot) to trade sideways and quote in the range of 83.05 and 83.40,” Somaiya added.

Brent crude futures, the global oil benchmark, rose 0.31 per cent to USD 87.92 per barrel.

In the domestic equity market, the 30-share BSE Sensex jumped 389.68 points or 0.58 per cent to 66,469.04 points while the broader NSE Nifty advanced 115 points or 0.58 per cent to 19,804.85 points.

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.

A forex dealer in Bombay looks at a graph on the movement of the rupee trade. File photo
| Photo Credit: Reuters

The rupee appreciated by 4 paise to 83.21 against the US dollar in early trade on Friday, October 6, 2023, on positive cues from the equity market ahead of the RBI’s interest rate decision.

Selling pressure from foreign equity investors amid strengthening dollar resulted in a negative bias, according to forex traders.

At the interbank foreign exchange, the domestic unit opened at 83.21 against the dollar and then reached the 83.22 level, before touching 83.21 again. This was a gain of 4 paise against the closing level of 83.25 on Thursday.

The six-member monetary policy committee of the Reserve Bank of India will announce its decision on key interest rates on Friday. Traders are also awaiting US weekly unemployment data later in the day.

“Rupee traded in a narrow range and volatility remained low ahead of the important RBI policy statement that will be released today.

“Expectation is that the central bank could keep rates on hold and maintain a hawkish stance,” Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

“From the US, the focus will be on the non-farm payrolls numbers… we expect the USD-INR (spot) to trade sideways and quote in the range of 83.05 and 83.40,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent higher at 106.42.

Brent crude futures, the global oil benchmark, was 0.32 per cent up at USD 84.34 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 174.41 points or 0.27 per cent higher at 65,805.98 points. The broader NSE Nifty advanced 57.65 points or 0.29 per cent to 19,603.40 points.

Foreign institutional investors remained net sellers in the capital market on Thursday, offloading shares worth ₹1,864.20 crore, as per stock exchange data.

The rupee depreciated 4 paise to 83.24 against the US dollar in early trade on Wednesday, October 4, 2023, as the strength of the American currency and a weak trend in domestic equities exerted pressure on the local unit.

Forex traders said sustained foreign fund outflows further dented investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.22, then touched 83.24, registering a decline of 4 paise over its last close.

On Octber 3, the rupee had settled at 83.20 against the dollar.

“The USD/INR pair is currently encountering significant resistance at the 83.30 level on the upside while finding support at around 82.80 on the downside. This essentially confines the pair within a range-bound pattern,” CR Forex Advisors MD-Amit Pabari said.

However, it’s worth noting that if either of these key levels is breached, there could be a substantial movement of 80 to 90 paise in either direction, Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.14 per cent to 107.14.

Brent crude futures, the global oil benchmark, fell 0.11 per cent to USD 90.82 per barrel on tighter supply outlook.

In the domestic equity market, the 30-share BSE Sensex was trading 441.51 points or 0.67 per cent lower at 65,070.59. The broader NSE Nifty declined 126.95 points or 0.65 per cent to 19,401.80.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹2,034.14 crore, according to exchange data.

The rupee rose 9 paise to 83.10 against the US dollar in early trade on Friday, September 29, 2023 amid a retreating dollar versus major rivals and positive cues from the equity markets.

Massive selling of equities by foreign investors and an upward trend in crude oil prices, however, capped the rise of the domestic currency, forex dealers said.

The Indian unit opened strong at 83.13 against the US dollar and touched the highest level of 83.09. It later traded at 83.10 against the greenback, registering a gain of 9 paise from its previous close.

On Thursday, the rupee settled 3 paise higher at 83.19.

Analysts said higher interest rates and US bond yields were prompting foreign investors to stay in the selling mode in Indian capital markets, while the rupee witnessed some recovery due to a significant decline in India’s current account deficit (CAD).

CAD has dropped to $9.2 billion, or 1.1 per cent of GDP in the first quarter of the current fiscal, from $17.9 billion (2.1 per cent of GDP) a year ago, the Reserve Bank of India said on Thursday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined by 0.19 per cent to 106.02.

Brent crude, the global oil benchmark, was trading 0.05 per cent higher at $95.43 per barrel.

On the domestic equity market front, the BSE Sensex climbed 84 points or 0.13 per cent to 65,592.32 in early trade. The Nifty advanced 37.75 points or 0.2 per cent to 19,562.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹3,364.22 crore, according to exchange data.

The rupee appreciated by 9 paise to 82.61 against the US dollar in early trade on Friday, September 1, 2023 tracking cues from positive domestic equity markets on the back of robust macroeconomic data.

However, outflow of foreign funds and crude prices hovering around USD 87 per barrel weighed on the domestic unit, according to forex traders.

As per the government data released on Thursday, India recorded GDP growth of 7.8 per cent during the April-June period of 2023-24, the highest in the past four quarters, retaining its position as the world’s fastest-growing major economy.

At the interbank foreign exchange, the domestic unit opened strong at 82.58, then touched the lowest level of 82.63 against the greenback.

Later, the rupee was trading at 82.61 against the dollar, registering a gain of 9 paise from its previous close.

On Thursday, the rupee closed at 82.70 against the dollar.

Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said: “Rupee rose marginally after data showed growth accelerated at 7.8 per cent in April-June quarter of FY24. However, the growth in the manufacturing sector fell to 4.7 per cent in the first quarter of the current fiscal as against 6.1 per cent in the year-ago period.

“Yesterday, the dollar rose marginally after core PCE index rose 4.2 per cent, a slightly stronger pace than the 4.1 per cent increase recorded in June. Today, volatility is expected to low ahead of the important non-farm payrolls and ISM manufacturing PMI number that will be released from the US. Lower-than-expected data could keep the dollar weighed down against its major crosses. We expect the USDINR (Spot) to trade sideways with a negative bias and quote in the range of 82.30 and 82.80,” Mr. Somaiya added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 103.65.

Brent crude futures, the global oil benchmark, was trading 0.23 per cent higher at USD 87.03 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 71.05 points or 0.11 per cent higher at 64,902.46 points. The broader NSE Nifty advanced 36.90 points or 0.19 per cent to 19,290.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹2,973.10 crore, according to exchange data.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee snapped its three-day rally and depreciated by 12 paise to 82.68 against the U.S. dollar in early trade on August 26 amid a firm American currency and subdued equity markets.

An upward movement in crude prices also weighed on the domestic currency even as the inflow of foreign funds capped the fall, forex traders said.

At the interbank foreign exchange, the domestic unit opened weak at 82.60 and then tumbled to the lowest level of 82.69 against the greenback. It later traded at 82.68, registering a fall of 12 paise over its previous close.

On Thursday, the rupee appreciated by 16 paise to settle at 82.56 against the U.S. dollar, making it the third straight day of gain.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services said, “Rupee fell after opening stronger against the U.S. dollar ahead of the Jackson Hole Symposium that begins today. Expectation is that the Fed Chairman could maintain a hawkish tone and that could extend gains for the greenback.”

Apart from U.S. Federal Reserve Chairman Jerome Powell’s statement at the Jackson Hole Symposium, market participants will keep an eye on the U.S. consumer sentiment index to be released on Friday.

“Better-than-expected economic data is likely to support the dollar. We expect the USDINR (Spot) to trade sideways and quote in the range of 82.30 and 82.80,” Mr. Somaiya said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 104.21.

Global oil benchmark Brent crude futures climbed 0.19% to $83.52 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 248.65 points or 0.38% lower at 65,003.69. The broader NSE Nifty declined 71.70 points or 0.37% to 19,315.00.

Foreign institutional investors (FIIs) were net buyers in equities on Thursday as they purchased shares worth ₹1,524.87 crore, according to exchange data.

Indian Rupee notes are seen in this picture illustration.
| Photo Credit: REUTERS

The rupee depreciated 6 paise to 82.81 against the US dollar in early trade on Tuesday, August 8, 2023 as a negative trend in domestic equities and firm crude oil prices weighed on investor sentiments.

Forex traders said the rupee is trading lower on strong dollar and foreign fund outflows over the past few days.

At the interbank foreign exchange, the domestic unit opened at 82.80, then touched 82.81, registering a decline of 6 paise over its last close as the RBI monetary policy committee meeting begins on Tuesday. The policy decision will be announced on Thursday.

On Monday, the rupee had settled 6 paise higher at 82.75 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.28 per cent to 102.33.

Brent crude futures, the global oil benchmark, rose 0.12 per cent to USD 85.44 per barrel.

Rupee is trading in a narrow range and volatility remained low ahead of the RBI policy statement that is scheduled to release later this week, traders said.

Expectation is that the central bank could keep rates on hold but commentary will trigger volatility for the currency, said Gaurang Somaiya Forex and Bullion Analyst at Motilal Oswal Financial Services.

Comments on inflation will be importantly watched and that could provide cues to the rupee, Somaiya added.

On the other hand, the dollar too traded in a range following lack of cues from the US.

“Today, focus will be on the trade balance number from the US; better-than-expected data could support the dollar at lower levels. We expect the USDINR(Spot) to trade sideways and quote in the range of 82.50 and 82.90,” Somaiya added.

In the domestic equity market, the 30-share BSE Sensex was trading 65.93 points or 0.10 per cent lower at 65,887.55. The broader NSE Nifty declined 14.10 points or 0.07 per cent to 19,583.20.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹1,892.77 crore, according to exchange data.