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| Photo Credit: Reuters

The rupee declined 4 paise to 83.95 against the U.S. dollar in early trade on Tuesday due to a stronger greenback in global markets and weak domestic manufacturing data.

A decline in the domestic equity market also contributed to the drop in the local unit, forex traders said.

At the interbank foreign exchange market, the rupee opened at 83.94, lower by 3 paise from its previous close before dropping further to 83.95. The unit had settled at 83.91 against the U.S. dollar on Monday.

“The rupee again extended its slide against the US dollar above 83.90 levels, slashing all previous week’s gains. With August proving to be a challenging month, the rupee ranked as the second-worst-performing currency in Asia,” CR Forex Advisors Managing Director Amit Pabari said.

The HSBC India Manufacturing PMI declining slightly to 57.5 in August and India’s economic growth falling to a 15-month low of 6.7% for the June quarter contributed to the drop in the local unit, he said.

Meanwhile, in the domestic equity markets, Sensex declined 78.28 points to 82,481.56 in early trade, while Nifty was down 23.6 points to 25,255.10.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08% to 101.73 points.

Brent crude, the international benchmark, declined 0.31% to USD 77.28 per barrel in futures trade.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹1,735.46 crore, according to exchange data.

“The rupee now finds itself in a delicate balance, caught in a tug-of-war between positive and negative factors. It has been trading within a tight range of 83.70 to 84.05, slipping by around 0.17% in August despite a notable correction in the dollar index,” Mr. Pabari said.

“The Reserve Bank of India’s active intervention has kept the rupee within this narrow band, and as long as the central bank maintains its grip, the rupee is likely to remain stable,” he added.

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| Photo Credit: Reuters

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on Thursday (August 8, 2024), ahead of the Reserve Bank of India’s monetary policy outcome.

Market participants are awaiting cues from the central bank’s observation of recent events and its observations on food inflation which continues to remain high.

Foreign fund outflows and gains in Brent crude price further dented investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.94 against the greenback, then touched 83.93, registering a rise of 2 paise over its previous closing price.

On Wednesday, the rupee consolidated in a narrow range and settled for the day lower by 3 paise at 83.95 against U.S. dollar.

“Indian rupee was again sold off as it closed at 83.95 on Wednesday very close to the psychologically important level of 84.00. Market will await the monetary policy before checking on RBI allowing the rupee to fall further as it protects 83.96,” 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 trading 0.13% lower at 103.06.

Brent crude, the global oil benchmark, advanced 0.43% to USD 78.67 per barrel.

The Indian Central Bank is set to hold rates for the ninth consecutive month but investors were hoping for a more dovish tone. Though markets still do not expect a cut in the next meeting in October, the first cut may come in February-2025.

“The market awaits the central bank’s observation of recent events and what it is says on food inflation which continues to remain higher at around 7% with vegetable inflation around 30%,” Mr. Bhansali said.

The Reserve Bank’s rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy on Tuesday amid expectations of no change in benchmark interest rate in view of concerns on inflation and economic growth remaining steady.

The decision of the RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee (MPC) will be announced later on the day.

On the domestic equity market front, Sensex declined 251.76 points, or 0.32%, to 79,216.25 points. The Nifty fell 83.80 points, or 0.34%, to 24,213.70 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹3,314.76 crore, according to exchange data.

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| Photo Credit: R. Ragu

The rupee traded flat at 83.53 against the U.S. currency in early trade on July 12 amid firm crude oil prices and gains in domestic stocks.

At the interbank foreign exchange market, the rupee opened flat at 83.53 against the U.S. dollar. The local unit moved in a tight range of 83.50 to 83.54 in morning deals.

The rupee was trading flat at 83.53 against the U.S. dollar at 0935 hrs.

Forex dealers said the impact of firm crude oil prices was offset by overnight losses in the US dollar index and early gains in the domestic equity markets.

The U.S. dollar index eased on Thursday after softer US inflation data raised hopes of rate cut by the US Fed by September.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 104.49.

Brent crude futures, the global oil benchmark, were trading 0.20% higher at USD 85.60 per barrel.

Domestic equity markets were trading higher in early session on Friday. Benchmark Sensex climbed 226.11 points to 80,123.45 while broader Nifty was up 82.1 points to 24,398.05.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,137.01 crore, according to exchange data.

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

The rupee opened on a flat note against the US dollar in early trade on Tuesday, June 11, 2024, weighed down by a muted trend in domestic equities and the strength of the American currency in overseas markets.

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Forex traders said the US dollar strengthened due to increased demand from oil importers and stronger-than-expected economic data from the US. Moreover, rising crude oil prices also weighed on the local unit.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.49 against the American currency and touched 83.50 in initial trade.

On Monday, the rupee settled for the day lower by 10 paise at 83.50 against the US dollar.

The Reserve Bank of India’s positive economic outlook, with solid growth and unchanged inflation projections, suggests that there is less room for any early cuts amid prospects of rising inflation. This is likely to benefit the rupee from a favourable interest rate differential, said CR Forex Advisors MD Amit Pabari.

Further, Foreign Institutional Investors (FII) have resumed their buying. FIIs were net buyers in the capital markets on Monday, as they purchased shares worth Rs 2,572.38 crore, according to exchange data.

Moreover, anticipated inflows such as Reliance Infrastructure raising USD 350 million, SpiceJet planning to raise USD 250 million, and Clix Capital aiming to raise USD 600 million are likely to benefit the rupee, Pabari said.

Rupee likely to swing within range

Given these factors, the rupee is expected to swing within a range of 82.90 to 83.70, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.12, lower by 0.02 per cent.

Brent crude futures, the global oil benchmark, fell 0.20 per cent to USD 81.47 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 155.45 points, or 0.20 per cent lower at 76,334.63 points. The broader NSE Nifty was down 33.25 points, or 0.14 per cent, to 23,225.95 points.

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| Photo Credit: R. Ragu

The rupee appreciated 5 paise to 83.24 against the U.S. dollar in early trade on May 31 boosted by robust sentiment in domestic equity markets and a downward trend in the crude oil prices overseas.

Forex traders said, however, strong American currency and unabated outflow of foreign capital weighed on the local unit.

Also, they said market participants are expected to take cues from domestic macroeconomic data to be released later in the day.

At the interbank foreign exchange market, the local unit opened at 83.25 and gained further to trade at 83.24 against the greenback in initial deals, registering an increase of 5 paise from its previous closing level.

On Thursday, the rupee gained 11 paise to close at 83.29 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 104.79.

The latest US GDP data released on Thursday showed the world’s largest economy grew at a slower pace of 1.3% against the projected 1.6% in the January-March quarter. This triggered expectations of interest rate reduction by the Federal Reserve.

Brent crude futures, the global oil benchmark, fell 0.38% to USD 81.55 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 500.19 points, or 0.68% higher at 74,385.79 points. The broader NSE Nifty soared 143.80 points or 0.64% to 22,632.45 points in initial trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, selling shares worth ₹3,050.15 crore, according to exchange data.

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| Photo Credit: Nagara Gopal

The rupee depreciated 6 paise to 83.58 against the U.S. dollar in early trade on April 19, weighed down by a negative trend in domestic equities and elevated crude oil prices.

Forex traders said the strength of the American currency in the overseas market also dented investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.58 against the dollar, registering a fall of 6 paise over its previous close.

The local unit pared the initial losses and also touched a high of 83.46 against the American currency in early trade on Friday.

On Thursday, the rupee rebounded from its all-time low level and closed 9 paise higher at 83.52 against the U.S. dollar Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.17, higher by 0.02%.

Brent crude futures, the global oil benchmark, rose 2.46% to USD 89.25 per barrel.

“Brent Oil prices moved up to USD 90.48 per barrel after Iran threatened to review its stance on nuclear weapons if Israel attacked Tehran’s nuclear sites,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Asian currencies were a tad lower on news of the conflict rising further as IDR fell to 16281, while the won fell to 1390. CNH also was lower at 7.2569. The yen was higher at 153.68 on account of risk aversion.

“Risk-off sentiments will keep the rupee on the weaker side,” Bhansali said.

On the domestic equity market, the 30-share BSE Sensex was trading 489.77 points, or 0.68% lower at 71,999.22 points. The broader NSE Nifty was down 144.35 points, or 0.66%, to 21,851.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹4,260.33 crore, according to exchange data.