The rupee depreciated 3 paise to 83.27 against the US dollar in the morning session on Wednesday, November 1, 2023 tracking a strong American currency overseas and muted trend in domestic equities.

Persistent foreign fund outflows also weighed on the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 83.26 against the dollar. It touched a low of 83.27 in initial deals, registering a fall of 3 paise over its previous close.

On Tuesday, the rupee settled at 83.24 against the American currency.

In October, the USD/INR pair exhibited an unusual trend, with the lowest monthly intraday trading range observed recently. For most of the month, except for a few sessions, the interbank rate remained close to 83.25, varying just by one or two paise above or below, CR Forex Advisors MD-Amit Pabari said.

This apparent stability stands out, given the backdrop of significant global events, such as the Israel-Palestine conflict, a strong US Dollar Index (US DXY), and elevated US 10-year bond yields, among others.

“It’s essential to remember that lower volatility often signals a contrary opinion, indicating the potential for increased volatility in the near future,” Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 106.70, higher by 0.04 per cent.

Global oil benchmark Brent crude futures declined 0.05 per cent to USD 87.41 per barrel.

On the domestic equity market front, BSE Sensex was trading 64.82 points or 0.10 per cent lower at 63,810.11 points, while the broader NSE Nifty declined 5.30 points or 0.03 per cent to 19,074.30 points.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹696.02 crore, according to exchange data.

On the domestic macroeconomic front, the growth of eight key infrastructure sectors slowed down to a four-month low of 8.1 per cent in September 2023 against 8.3 per cent a year ago, according to the official data released on Tuesday.

The central government’s fiscal deficit touched 39.3 per cent of the full-year target in the first half of the current financial year, slightly higher than 37.3 per cent recorded in the year-ago period.

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.

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.