Rupee appreciated 7 paise to 83.82 against the U.S. dollar. File
| Photo Credit: Reuters

Rupee appreciated 7 paise to 83.82 against the U.S. dollar in morning trade on Friday (August 30, 2024), supported by significant foreign fund inflows and a positive trend in domestic equities.

Forex traders said a rise in global risk sentiments supported the rupee, while recovery in the U.S. dollar and month-end dollar demand from importers and oil marketing companies (OMCs) weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.83, then gained ground to touch 83.82, registering a rise of 7 paise from its previous close.

On Thursday, the rupee appreciated 8 paise to close at 83.89 against the American currency.

According to forex traders, MSCI rebalancing flows could take the rupee higher.

“Some appreciation in the rupee appears likely, with anticipated MSCI inflows of around $3 billion. The rupee is likely to trade within a range of 83.75 to 83.90, while in the medium-term, a range of 83.60 to 84.05 is anticipated, with a bias towards the upside,” CR Forex Advisors MD-Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.03% to 101.37 points.

Brent crude, the international benchmark, gained 0.29 per cent to $80.17 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 227.63 points, or 0.28%, to 82,362.24 points, while the Nifty was up 65.70 points, or 0.26%, to 25,217.65 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth ₹3,259.56 crore, according to exchange data.

Meanwhile, Moody’s Ratings on Thursday raised India’s GDP growth forecast for 2024 and 2025 calendar year to 7.2% and 6.6%, respectively, on strong broad-based growth.

Photo used for representation purpose only.
| Photo Credit: Reuters

The rupee depreciated 12 paise to 83.56 against the US dollar in early trade on July 2, weighed down by the strengthening of the American currency in the overseas markets and elevated crude oil prices.

Forex traders said oil importers and foreign portfolio investors (FPIs) bought US dollars amid rising US yields, and this dragged down the local unit.

At the interbank foreign exchange market, the rupee opened at 83.51 and lost further ground to trade at 83.56 against the greenback in initial deals, registering a fall of 12 paise from its previous closing level.

On Monday, the rupee depreciated 10 paise to settle at 83.44 against the US dollar.

The rupee had dollar inflows and rose to 83.37 on Monday, but was sold-off to 83.44 levels, as oil and FPIs bought dollars looking at rising US yields, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

On Tuesday, rupee is likely to touch 83.55 before cooling off to 83.45, Bhansali said, adding that the narrow range for the day could be 83.40 to 83.55.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.91, higher by 0.02 per cent, following a surge in US treasury yields as investors contemplated a second Trump US presidency.

Brent crude futures, the global oil benchmark, advanced 0.22 per cent to USD 86.80 per barrel.

In the domestic equity market, benchmark indices, Sensex and Nifty, touched lifetime high levels in early trade. However, the indices pared the initial gains and were trading 64.46 points, or 0.08 per cent, lower at 79,411.73 points. The broader NSE Nifty fell 25.55 points, or 0.11 per cent, to 24,116.40 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 426.03 crore, according to exchange data.

The rupee paused its three-day slide and inched up 2 paise to 83.23 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee paused its three-day slide and inched up 2 paise to 83.23 against the U.S. dollar in early trade on Friday amid positive cues from the domestic equity markets and a weak American currency overseas.

An upward trend in the crude oil prices and selling pressure from foreign equity investors continued to weigh on the Indian currency, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.24 and gained further to reach 83.23 against the greenback, up 2 paise from its previous close.

The rupee settled 8 paise lower at 83.25 against the dollar on Thursday, the third consecutive day of fall. It had dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday when it closed at 83.17 against the dollar. Forex markets were closed on Tuesday on account of Dussehra.

According to analysts, the dollar retreated as the U.S. Treasury yields dropped from its record levels after the U.S. GDP data, durable goods sales orders as well as home sales numbers exceeded the estimated growth.

Besides, the European Central Bank’s decision to leave the benchmark interest rate unchanged also came on expected lines, they said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent lower at 106.57 on Friday.

Global oil price benchmark Brent crude witnessed a sharp rise of 1.27 per cent to $89.05 per barrel.

On the domestic equity market front, the Sensex climbed 272.63 points or 0.43 per cent to 63,420.78 while the broader Nifty rose 88.20 points or 0.47 per cent to 18,945.45.

Foreign Institutional Investors sold equities worth ₹7,702.53 crore on Thursday, according to exchange data.

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar in early trade on Thursday, tracking a firm American currency and negative equity market sentiment.

Forex traders said the Indian currency was also pressured due to massive selling of equities by foreign investors even as the crude oil prices hovered close to $90 a barrel amid geopolitical tensions in the Middle East.

At the interbank foreign exchange market, the local unit opened weak at 83.19 and then touched the lowest level of 83.23 against the greenback, registering a loss of 6 paise from its previous close.

This is the third day of fall in the rupee. It dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday. Forex markets were closed on Tuesday on account of Dussehra. On Wednesday, the rupee closed at 83.17 against the U.S. dollar.

Analysts attributed the strengthening dollar to a record rise in the U.S. Treasury yields after positive data on home sales in the U.S. on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 106.75 on Thursday.

Global oil price benchmark Brent crude declined 0.31 per cent to $89.85 per barrel.

On the domestic equity market front, the Sensex plunged 478.55 points or 0.75 per cent to 63,570.51 while broader Nifty tanked 152.15 points or 0.80 per cent to 18,970.

Foreign Institutional Investors sold equities worth ₹4,236.60 crore on Wednesday, according to exchange data.

The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade. File
| Photo Credit: V. SUDERSHAN

The rupee appreciated by 5 paise to 83.11 against the U.S. dollar in early trade on Wednesday, tracking a weak America currency and softening crude oil prices in the overseas market.

Some buying by foreign equity investors supported the Indian currency even though it was pressured by a subdued sentiment in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened stronger by 8 paise at 83.08 and then touched the lowest level of 83.11 against the greenback, registering a gain of 5 paise from its previous close.

On Monday, the rupee closed 4 paise lower at 83.16 against the U.S. dollar. Forex markets were closed on Tuesday on account of Dussehra.

Gaurang Somaiya, Forex and bullion analyst, Motilal Oswal Financial Services, said that the dollar fell against its major crosses after U.S. yields retracted from its record level.

He said the USD-INR (Spot) is expected to “trade sideways with a negative bias and quote in the range of 82.80 and 83.20”.

“Market participants will now be keeping an eye on the US GDP data that is due tomorrow and could trigger more wild swings in bond yields and currency markets. Euro and pound fell in yesterday’s session after preliminary manufacturing data came in below estimates,” Mr. Somaiya added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 106.18.

Global oil price benchmark Brent crude inched up 0.05 per cent to $88.11 per barrel.

On the domestic equity market front, Sensex fell 48.16 points or 0.06 per cent to 64,530.02 points while broader Nifty was down 11.20 points or 0.06 per cent at 19,270.55 points.

Foreign Institutional Investors bought equities worth market ₹252.25 crore on Monday, according to exchange data.

Representational image only.
| Photo Credit: The Hindu

The Rupee was trading in a narrow range and appreciated three paise to 83.25 against the U.S. dollar in early trade on October 19, amid a negative trend in domestic equities.

Forex traders said the Rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.26 against the dollar and then touched an early high of 83.25, registering a gain of three paise over its previous close. On Wednesday, the Rupee settled at 83.28 against the U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% higher at 106.60. Brent crude futures, the global oil benchmark, fell 0.55% to $91 per barrel.

Forex traders said crude oil prices fell as markets await further development from the Israel-Hamas war, while focus remained on upcoming signals from the U.S. Fed.

In the domestic equity market, the 30-share BSE Sensex was trading 435.23 points or 0.66% lower at 65,441.79. The broader NSE Nifty declined 131.00 points or 0.67% to 19,540.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on October 18 as they sold shares worth ₹1,831.84 crore, according to exchange data.

“FPIs continued their relentless selling in stocks and this buying of dollars from oil companies who due to steep rise in oil prices have been on the U.S. dollar buy side for the last one month keeping rupee in range as RBI sold dollars,” Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP, said.

Representational image only.
| Photo Credit: The Hindu

The Rupee witnessed range-bound trading against the U.S. dollar in early trade on October 9, weighed down by a negative trend in domestic equities and the strength of the American currency in the overseas market.

Forex traders said the safe-haven dollar gained ground amidst heightened concerns in the Middle East.

At the interbank foreign exchange, the Rupee opened at 83.24 against the dollar, then touched 83.23, registering a rise of four paise over its previous close. On Friday, the Rupee declined two paise to settle at 83.27 against the U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.26% to 106.32.

Brent crude futures, the global oil benchmark, advanced 3.69% to $87.70 per barrel. According to CR Forex Advisors MD-Amit Pabari, market sentiment turned delicate following clashes between Israeli forces and Hamas over the weekend, coinciding with a surprise attack by militants on Israel, marking the deadliest day of violence in the region in half a century.

“Global tensions propel safe-haven dollar, while RBI’s vigilant stance sparks currency market tug-of-war,” Mr. Pabari added.

“The USD/INR pair is encountering notable resistance at the 83.30 level, while concurrently finding support around 82.80. This creates a scenario akin to a tug-of-war, where a breach of either pivotal level could trigger a significant movement, with an estimated range of approximately one rupee in either direction,” he said.

In the domestic equity market, the 30-share BSE Sensex declined 274.33 points or 0.42% to 65,721.30. The broader NSE Nifty fell 84.10 points or 0.43% to 19,569.40.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹90.29 crore, according to exchange data.

“Meanwhile, India’s forex reserves dropped further by $3.794 billion to $586.908 billion for the week ended September 29,” the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had declined by $2.335 billion to $590.702 billion as of September 22.

The rupee snapped a four-day losing streak to close 21 paise higher at 83.02 against the U.S. Dollar on Friday, aided by the currency’s flow into domestic equities and likely supported by intervention from the Reserve Bank of India (RBI)

The Indian currency had hit its lifetime low of 83.23 against the U.S. Dollar on Thursday.
“We suspect it was heavy intervention from the central bank and some corporate inflows that pushed the pair lower,” said Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.

“Over the past one week, we think the RBI has been very active in defending the rupee and preventing it from going past the 83.30 mark [intraday].”

“Over the next one week, U.S. CPI and the trend in the Chinese currency will set the tone. We expect a broad range of 82.70 and 83.30 on spot,” he added.

India Forex and Asset Management Private Limited (IFA Global), in a note, said, “The rupee weakness continued this morning and opened at 83.14 amid higher crude and global dollar strength. However, positive sentiments in domestic equities and likely RBI intervention at higher levels helped the INR strengthen in the second half of the session.”