Image used for representative purpose only
| Photo Credit: R. Ragu

Rupee rose by 2 paise to 83.95 against the U.S. dollar in early trade on Friday (September 6, 2024) amid a weaker dollar against major currencies overseas.

An upward movement in the international crude oil prices, negative domestic equity markets and outflow of foreign capital capped gains in the local unit, forex traders said.

At the interbank foreign exchange market, the rupee opened 1 paisa higher at 83.96 against the greenback. The domestic unit had settled 4 paise higher at 83.97 on Thursday.

On Wednesday, the rupee had breached the crucial 84-mark for the second time within a month and settled 3 paise lower at 84.01 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.10% to 100.97 points.

Analysts said the American currency was trading lower as investors were awaiting cues from the U.S. jobs data to be released later in the day.

Brent crude, the international benchmark, was marginally up by 0.01% at USD 72.70 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex fell 189.44 points, or 0.23%, to 82,011.72, while the Nifty was down 52.55 points, or 0.21%, to 25,092.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth ₹688.69 crore, according to exchange data.

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.

The rupee finally settled at 83.96 (provisional) against the American currency, down 4 paise from its previous close. File
| Photo Credit: Reuters

The rupee consolidated in a narrow range and settled for the day lower by 4 paise at 83.96 (provisional) against U.S. dollar on Wednesday (August 7, 2024), weighed down by a recovery in the U.S. dollar and geopolitical tensions in the Middle East.

Forex traders said the Indian rupee depreciated on Wednesday (August 7, 2024) on a strong U.S. dollar and positive crude oil prices. However, strength in the domestic markets cushioned the downside.

At the interbank foreign exchange market, the local unit opened at 83.86 and touched an intraday low of 83.97 against the dollar during the session. It finally settled at 83.96 (provisional) against the American currency, down 4 paise from its previous close.

On Tuesday (August 6, 2024), the rupee recovered from its all-time low level and settled for the day 17 paise higher at 83.92 against the U.S. dollar.

The local unit had slumped 37 paise to settle at an all-time low of 84.09 against the U.S. dollar on Monday (August 5, 2024).

“We expect the rupee to trade with a negative bias on a recovery in the U.S. dollar and geopolitical tensions in the Middle East. However, positive global equities may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Any further intervention by the Reserve Bank may also support the rupee. Investors may watch out for RBI’s monetary policy decision. USD-INR spot price is expected to trade in a range of ₹83.75 to ₹84.20, Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.31% to 103.28 points.

Brent crude, the global oil benchmark, was trading 1.22% higher at USD 77.41 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex rose 874.94 points, or 1.11%, to close at 79,468.01 points, while the Nifty advanced 304.95 points, or 1.27%, to 24,297.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday (August 6, 2024) as they offloaded shares worth ₹3,531.24 crore, according to exchange data.

Meanwhile, the Reserve Bank’s rate-setting panel started its three-day deliberations for the next set of bi-monthly monetary policy on Tuesday (August 6, 2024) 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 on Thursday (August 8, 2024).

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

Rupee opened on a muted note and fell to an all-time low of 83.80 against the U.S. dollar on August 5, as the risk off situation in world markets kept the dollar well bid.

Forex traders said the sharp downfall in the domestic unit came on the heels of a significant downturn in the Indian equity markets and significant foreign fund outflows.

At the interbank foreign exchange market, the local unit opened at 83.78 and then fell to an all-time low of 83.80 against the American currency, registering a fall of 8 paise from its previous close.

On August 2, the rupee settled 1 paisa higher at 83.72 against the U.S. dollar in a range-bound trade.

Over the past week, major global equities experienced a significant sell-off. The release of last week’s U.S. Jobs Report, which fell significantly below expectations, sparked recession fears in the market, increasing demand for safe-haven assets.

Additionally, the upcoming U.S. elections in November are likely to keep investors on edge. Meanwhile, tensions are escalating in the Middle East following the assassination of Hamas leader Ismail Haniyeh in Tehran.

The Indian rupee has remained largely south of the 83.70 level despite the weakening of the U.S. dollar. Additionally, oil prices saw an 11 per cent correction.

“However, despite these favourable conditions, the rupee has not appreciated, likely due to the Reserve Bank of India capping its movement. In the short term, the Rupee is expected to trade within the range of 83.75 to 83.90,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 102.95, lower by 0.24%.

Brent crude futures, the global oil benchmark, rose 0.30% to $77.04 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 1533.11 points, or 1.89% lower at 79,448.84 points. The broader NSE Nifty was down 463.50 points, or 1.88%, to 24,254.20 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on August 2 as they offloaded shares worth ₹3310.00 crore, according to exchange data.

Image used for representative purpose only
| Photo Credit: R. Ragu

The rupee opened flat at 83.73 against the U.S. currency on July 30 as the dollar remained firm in overseas markets.

At the interbank currency exchange, the rupee opened firm at 83.73 and was trading in the range of 83.73 to 83.74 in early trade.

Forex traders said a decline in crude oil prices supported the rupee but firm dollar overseas restricted gains for the domestic unit. Month-end dollar demand as well as forex outflows also kept the rupee in a tight range.

The rupee continued to trade flat at 83.73 against the US dollar at 9.45 am.

In the domestic equity market, the 30-share BSE Sensex rose 67 points to 81,423.53, while Nifty advanced 25 points to 24,861.35 in early trade on Tuesday.

The Sensex had advanced 23.12 points, or 0.03 per cent, to settle at 81,355.84 points, on Monday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.6070, marginally up 0.04 per cent.

Brent crude futures — the global oil benchmark — slipped 0.33, or 0.41 per cent, to USD 79.45 per barrel.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday, selling shares worth Rs 2,474.54 crore, according to exchange data.

Image for representation only
| Photo Credit: Reuters

The rupee depreciated 5 paise to 83.54 against the U.S. dollar in early trade on Thursday, weighed down by elevated crude oil prices.

Forex traders said a positive trend in domestic equities, wherein benchmark indices touched all-time high levels and significant foreign fund inflows supported the rupee and restricted the fall.

At the interbank foreign exchange market, the rupee opened at 83.52 and lost further ground to trade at 83.54 against the greenback in initial deals, registering a fall of 5 paise from its previous closing level.

On Wednesday, the rupee settled 1 paisa lower at 83.49 against the US dollar.

“Though the equity markets are shining bright, the Indian rupee has been trading flat to weaker, despite a drop in the dollar towards 105.04 and US 10-year yields touching 4.35 per cent, post the US service PMI data and ADP non-farm employment change data were weaker than expected,” CR Forex Advisors MD Amit Pabari said.

According to Pabari, crude oil prices have risen nearing USD 87 per barrel and this acted as a counterweight, limiting the rupee’s gains.

“However, stronger fundamentals, robust inflows, and equity markets at an all-time high are clashing with temporary external pressures. As these external factors dissipate, the Indian Rupee is poised to gain strength,” Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.36.

Brent crude futures, the global oil benchmark, declined 0.55 per cent to USD 86.86 per barrel.

In the domestic equity market, Sensex breached the historic 80,000-mark and Nifty scaled fresh lifetime highs in early trade. The BSE Sensex was trading 224.79 points, or 0.28 per cent higher at 80,211.59 points. The broader NSE Nifty advanced 67.80 points, or 0.28 per cent, to 24,354.30 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 5,483.63 crore, according to exchange data.

Meanwhile, according to an official of S&P Global Ratings, a sovereign rating upgrade for India in the next 24 months is possible if the central government is able to prudently manage its finances and bring down the fiscal deficit to 4 per cent of GDP.

S&P Global Ratings Director, Sovereign Ratings, YeeFarn Phua, said the trigger for an upgrade would be the government (Centre plus States) deficit falling below 7% of the GDP, and a lot of this would have to be driven by the central government.

Image for representation
| Photo Credit: C. Venkatachalapathy

The rupee appreciated by 7 paise to 83.24 against the U.S. dollar on Wednesday amid softening crude oil prices in the international market.

Forex traders said the local unit faced some resistance due to subdued sentiment in the domestic equity market and foreign fund outflows.

At the interbank foreign exchange market, the local unit opened at 83.29 and inched up further to trade at 83.24 against the greenback, registering a gain of 7 paise from its previous closing level.

On Tuesday, the rupee appreciated 6 paise to close at 83.31 against the U.S. dollar.

“As the rupee seems to have started aligning with its fundamentals, in the short term, one can expect the Rupee to approach levels of 83.00 to 83.10, while the medium-term target is projected to range between 82.80 to 82.50 levels,” 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 at 104.63, lower by 0.02%.

Brent crude futures, the global oil benchmark, declined 0.65% to $82.34 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 37.12 points, or 0.05% lower at 73,916.19 points. The broader NSE Nifty was down 30.40 points, or 0.13%, to 22,498.65 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹1,874.54 crore, according to exchange data.

On the macroeconomic front, according to an article in the RBI’s May Bulletin released on Tuesday, India is likely to grow by 7.5% in the first quarter of the current financial year, driven by rising aggregate demand and non-food spending in the rural economy.

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 appreciated by 2 paise to 83.23 against the U.S. dollar in early trade on October 18 on the back of a weaker American currency and an inflow of foreign funds in the domestic equity markets.
| Photo Credit: Reuters

The rupee appreciated by 2 paise to 83.23 against the U.S. dollar in early trade on October 18 on the back of a weaker American currency and an inflow of foreign funds in the domestic equity markets.

Forex traders said surging crude oil prices and negative trends in equity markets, however, capped the rise in the domestic currency.

At the interbank foreign exchange, the domestic unit opened at 83.24 against the dollar and then inched up to 83.23, registering a gain of 2 paise over its previous close.

On October 17, the rupee settled at 83.25 against the U.S. dollar.

Analysts expect the rupee to stay in a narrow range as traders may take cues from retail sales and industrial production data from the U.S. Data on the U.S. crude weekly inventory, China’s GDP, industrial production, and U.K. and European region inflation are also awaited.

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Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 106.18.

Brent crude futures, the global oil benchmark, witnessed a sharp rise of 2.10% to $88.48 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 110.73 points or 0.17% lower at 66,317.36. The broader NSE Nifty declined 24.75 points or 0.12% to 19,786.75.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on October 17 as they purchased shares worth ₹263.68 crore, according to exchange data.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee recovered 6 paise to settle at 82.74 (provisional) against the U.S. currency on Wednesday following weakness in the U.S. dollar in global markets.

FII inflows into the capital market and firm equity markets supported the local unit while gains in crude oil prices restricted the rupee upside, according to analysts.

At the interbank foreign exchange, the domestic unit opened higher at 82.67 amid overnight losses in the U.S. dollar against major global rivals. It moved between a high of 82.66 and a low of 82.81 in intra-day trade.

The rupee finally closed at 82.74 against the dollar, a gain of 6 paise compared to the closing level of 82.80 on Tuesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 103.50 after U.S. data suggested that labour market was cooling, a scenario that could provide support for the U.S. Federal Reserve in eventual easing interest rates.

Brent crude futures, the global oil benchmark, rose 0.56% to $85.97 per barrel.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points while the broader Nifty advanced by 4.80 points to close at 19,347.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth ₹61 crore, according to exchange data.