At the interbank foreign exchange market, Rupee opened at 84.06 against the greenback and stayed almost flat throughout the session. File
| Photo Credit: The Hindu

The Rupee on Monday (October 21, 2024) settled flat at 84.07 (provisional) against the U.S. dollar amid strong American currency against major rivals overseas and relentless foreign fund outflows.

“Investors remained cautious and stayed away from riskier assets due to geopolitical uncertainties,” forex dealers said. At the interbank foreign exchange market, the local unit opened at 84.06 against the greenback and stayed almost flat throughout the session. The unit finally settled at 84.07 (provisional) against the dollar, unchanged from its previous session’s closing level.

On Friday, the rupee slipped 1 paisa to close at 84.07 against the U.S. dollar, a tad higher from its all-time low of 84.09 recorded on August 5 this year.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.19% to 103.50.

Brent crude, the international benchmark, surged 1.42% to ₹74.10 per barrel in futures trade. On the domestic equity market front, Sensex declined 73.48 points, or 0.09%, to settle at 81,151.27 points. The Nifty also fell 72.95 points, or 0.29%, to 24,781.10 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth ₹5,485.70 crore, according to exchange data.

Analysts attributed the unabated outflow of FIIs to a further rate cut by the Chinese central bank and a muted sentiment towards domestic corporate earnings.

According to RBI data released on Friday, India’s forex reserves declined by $10.746 billion to $690.43 billion for the week ended October 11. In the preceding week, the reserves had dropped by $3.709 billion to $701.176 billion.

“A marginal decline in the value of the greenback against overseas currencies and rise in the domestic equity market supported the local unit and prevented further slide in the domestic unit,” forex traders said.
| Photo Credit: The Hindu

“Rupee depreciated two paise to close at 83.98 (provisional) against the U.S. dollar on Thursday (October 10, 2024) amid sustained foreign fund outflows and elevated crude oil prices. However, a marginal decline in the value of the greenback against overseas currencies and rise in the domestic equity market supported the local unit and prevented further slide in the domestic unit,” forex traders said.

At the interbank foreign exchange, the Rupee opened at 83.95, registering a marginal rise of one paisa against the U.S. dollar and traded in a tight range of 83.95-83.98. It settled at 83.98 (provisional), two paise lower than Wednesday’s (October 9, 2024) close of 83.96.

“The Rupee traded in a range-bound manner… a firm tone in the domestic markets supported the Rupee. However… recovery in crude oil prices capped sharp gains,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

“We expect the Rupee to trade with a negative bias on selling pressure from FIIs and geopolitical uncertainty amid the ongoing tensions in the Middle East. A strong U.S. dollar may further pressurise the Rupee. However, positive domestic markets may support the Rupee at lower levels,” he said, adding that Rupee spot price is expected to trade in a range of 83.80-84.20.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.02% to 102.91 points. Brent crude, the international benchmark, gained 1.45% to $77.69 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex rose 144.31 points or 0.18% to close at 81,611.41 points, while the Nifty was up 16.50 points or 0.07% to 24,998.45 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth ₹4,562.71 crore, according to exchange data.

“The Indian Rupee remained steady as the RBI left repo rate and CRR unchanged at 6.5% and 4.5%, respectively,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
| Photo Credit: The Hindu

The Rupee traded in a narrow range and settled for the day higher by just one paisa at 83.96 (provisional) against the U.S. dollar on Wednesday (October 9, 2024), after the Reserve Bank of India (RBI) kept its key interest rate unchanged and shifted its stance to ‘neutral’ that may lead to a cut in benchmark rates in forthcoming policies.

Forex traders said the Reserve Bank’s monetary policy action was in line with street expectations. Moreover, a muted trend in domestic markets and positive U.S. dollar weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.92 and finally settled for the day at 83.96 (provisional), higher by one paisa over its previous close of 83.97 against the dollar.

The Reserve Bank of India on Wednesday (October 9, 2024) kept the policy rate unchanged for the tenth time in a row but shifted its stance from ‘withdrawal of accommodation’ to ‘neutral’ that may lead to a cut in the forthcoming policies.

The monetary policy committee, which included three RBI officials and an equal number of new external members, voted five-to-one to keep the benchmark repurchase or repo rate — which governs the interest rate of home, auto, corporate and other loans — at 6.5% for a 10th straight policy meeting.

“The Indian Rupee remained steady as the Reserve Bank of India (RBI) left repo rate and CRR unchanged at 6.5% and 4.5%, respectively, in line with street expectations,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

“We expect the Rupee to trade with a negative bias on selling pressure from FIIs and geopolitical tensions in the Middle East. A strong U.S. dollar may further pressurise the Rupee.

“Dollar is trading at the highest levels in eight weeks. However, a recovery in the domestic markets and weak crude oil prices may support the Rupee at lower levels,” Mr. Choudhary said, adding that traders may take cues from the Federal Open Market Committee (FOMC) meeting minutes which will indicate U.S. Fed’s further rate cut path.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.09% to 102.63 points. Brent crude, the international benchmark, gained 0.82% to $77.81 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 167.71 points or 0.21%, to close at 81,467.10 points, while the Nifty was down 31.20 points or 0.12% to 24,981.95 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday (October 8, 2024), as they offloaded shares worth ₹5,729.60 crore, according to exchange data.

The rupee remains flat at 83.96 against the dollar amid retreating crude oil prices and weak American currency. File
| Photo Credit: The Hindu

The rupee paused its slide and traded flat at 83.96 against the U.S. dollar in early deals on Friday (October 4, 2024) amid retreating crude oil prices and a weak American currency against major Asian rivals.

“Subdued sentiment in the domestic equity markets amid massive outflows of foreign funds in the past three days played a spoilsport and prevented a recovery in the rupee,” Forex traders said.

At the interbank foreign exchange, the local unit opened at 83.96 against the greenback and failed to recover from the deep plunge witnessed in the previous session.

On Thursday (October 3, 2024), the rupee slid 14 paise to settle at 83.96 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05% to 101.69.

Brent crude, the international benchmark, skidded 0.03% to $77.60 in futures trade.

On the domestic equity market front, the Sensex showed a marginal recovery and inched up 7.26 points or 0.01% to 82,504.36, while the Nifty was 78.60 points or 0.31% down to 25,171.50. Both the indices crashed more than 2% on Thursday (October 3, 2024).

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday (October 3, 2024), offloading shares worth ₹15,243.27 crore on a net basis in the cash segment, according to exchange data. FIIs have sold shares worth over ₹30,000 crore since Monday (September 30, 2024).

Analysts said foreign investors rushed to sell Indian equities as Chinese stocks turned bullish after the country announced a slew of stimulus measures to revive the economy.

On September 26, the Rupee declined eight paise to settle at 83.66 against the American currency. File
| Photo Credit: The Hindu

The Rupee declined four paise to settle at 83.70 (provisional) against the U.S. dollar on Friday (September 27, 2024) amid subdued domestic equity markets and increased month-end demand for the American currency.

“However, sliding crude prices in the international market and renewed foreign fund inflows supported the local unit and restricted the fall,” forex dealers said.

At the interbank foreign exchange, the local unit opened at 83.64 and moved between the high of 83.62 and the low of 83.71 during the session. The local unit finally settled at 83.70 (provisional) against the dollar, registering a loss of four paise from its previous close.

On Thursday (September 26, 2024), the Rupee declined eight paise to settle at 83.66 against the American currency. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06% to 100.30.

Analysts said the market participants were awaiting cues from the personal consumption expenditure data to be released in the U.S. on Friday (September 27, 2024.) Brent crude, the international benchmark, fell 0.03% to 71.58 in futures trade.

On the domestic equity markets front, the Sensex fell 264.27 points or 0.31% to settle at 85,571.85, while the Nifty declined 37.10 points or 0.14% to 26,178.95.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, purchasing shares worth ₹629.96 crore, according to exchange data.

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

The rupee appreciated 10 paise to 83.53 against the U.S. dollar in early trade on Wednesday (September 25, 2024), on the overall dollar weakness in the overseas market.

Forex traders said the U.S. dollar has weakened against majors post the weak consumer confidence print. The U.S. consumer confidence dropped by the most in three years to 98.7 from 105.6 in August.

At the interbank foreign exchange market, the local unit opened at 83.59 against the American currency, then touched 83.54, registering a rise of 10 paise over its previous close.

On Tuesday (September 24, 2024), the rupee depreciated 9 paise to close at 83.63 against the American currency.

“The Indian rupee which depreciated on Tuesday opened stronger on the overall dollar weakness against Asian currencies and European currencies,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.21% to 100.25 points.

Brent crude, the international benchmark, was trading lower by 0.28% to $74.96 per barrel in futures trade.

Forex traders said the rupee continues to hold steady within a well-defined range on active intervention by the Reserve Bank of India (RBI).

On the domestic equity market, the 30-share BSE Sensex appreciated 33.63 points, or 0.04%, to 84,947.67, while the Nifty was up 6.35 points, or 0.02%, to 25,946.75 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹2,784.14 crore, according to exchange data.

On the domestic macroeconomic front, the Asian Development Bank (ADB) on Wednesday retained India’s growth forecast for the current fiscal at 7% and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher government spending.

In its Asian Development Outlook (ADO) update of September, the ADB said exports in the current fiscal will be higher than earlier projected, led by larger services exports. However, merchandise export growth will be relatively muted through the next fiscal.

At the interbank foreign exchange market, the local unit opened at 83.92, then gained ground to touch 83.88, registering a rise of 9 paise from its previous close. File
| Photo Credit: The Hindu

The rupee appreciated 9 paise to 83.88 against the U.S. dollar in morning trade on Thursday (August 29, 2024), supported by the weakness of the American currency in the overseas market and a positive trend in domestic equities.

Forex traders said the market is awaiting cues from the U.S. Gross Domestic Product (GDP) and the U.S. Personal Consumption Expenditure (PCE) inflation data, as this data point is crucial as it could sway the Federal Reserve’s decision on whether to implement a 25 or 50 basis point rate cut at its September meeting.

At the interbank foreign exchange market, the local unit opened at 83.92, then gained ground to touch 83.88, registering a rise of 9 paise from its previous close.

On Wednesday (August 28, 2024), the rupee depreciated 4 paise to close at 83.97 against the American currency.

“The rupee is in the midst of a tug-of-war between positive and negative factors. With the Reserve Bank firmly in control, the rupee is expected to trade within a narrow range in the near term, with the upside likely capped around 83.80 and strong support near 84.05,” CR Forex Advisors MD Amit Pabari said.

“Most Asian currencies were range-bound as the market awaited the U.S. GDP and PCE data, with IDR at 15412, KRW at 1335 and CNH at 7.1278,” 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 down 0.16% to 100.92 points.

Brent crude, the international benchmark, gained 0.06% to $78.70 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 211.91 points, or 0.26%, to 81,997.47 points, while the Nifty was up 52.85 points, or 0.21%, to 25,105.20 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday (August 28, 2024), as they offloaded shares worth ₹1,347.53 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.

On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar. File
| Photo Credit: The Hindu

The Rupee fell one paisa to close at an all-time low of 83.72 (provisional) against the U.S. dollar on July 25, dragged down by demand for the American currency in the overseas market and significant foreign fund outflows.

Forex traders said the fall in domestic unit came on the heels of a significant downturn in the Indian equity markets, sparked by the government’s decision to hike the tax rate on capital gains.

At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.66 and a low of 83.72 against the dollar during the session.

It finally settled at an all-time low level of 83.72 (provisional) against the American currency, down one paisa from its previous close. On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar.

“The local unit appreciated slightly during the intra-day trade on supposed intervention by the Reserve Bank of India (RBI) and overall weakness in crude oil prices,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

“We expect the Rupee to trade with a slight negative bias on weak global markets and fresh FII outflows. However, weak U.S. dollar and declining crude oil prices may support the Rupee at lower levels. intervention by the Reserve Bank may also support the Rupee,” Mr. Choudhary added.

The government’s decision to hike the tax rate on capital gains dampened market sentiment, exerting immense pressure on the Rupee and the equity market.

In the domestic equity market, the 30-share BSE Sensex fell 109.08 points or 0.14% to settle at 80,039.80 points and Nifty dropped 7.40 points or 0.03% to 24,406.10 points.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.17, lower by 0.21%. Brent crude futures, the global oil benchmark, fell 1.79% to $81.25 per barrel.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹5,130.90 crore, according to exchange data.

On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar.
| Photo Credit: The Hindu

Rupee opened on a muted note and fell to an all-time low of 83.72 against the U.S. dollar on July 25, dragged down by the strength of the American currency in the overseas market and significant foreign fund outflows.

Forex traders said the fall in the domestic unit came on the heels of a significant downturn in the Indian equity markets, sparked by the government’s decision to hike the tax rate on capital gains.

At the interbank foreign exchange market, the local unit was trading in a narrow range. It opened at an all-time low of 83.72 against the American currency, registering a fall of one paisa from its previous close.

Budget 2024 highlights: Focus on employment, skilling, MSME and middle class; tax structure under new regime revised

On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar. The government’s decision to hike the tax rate on capital gains dampened market sentiment, exerting immense pressure on the Rupee and the equity market.

“Post-Budget day, the benchmark Indian equity indices, BSE Sensex and Nifty 50, dipped by approximately 0.3% and 0.2%, respectively, as foreign institutional investors withdrew a staggering $350 million from Indian stocks.

Watch: Union Budget 2024-25 | Key Highlights

“Adding to the turmoil, persistent high demand for dollars, driven by defence and oil payments, compounded the currency’s woes,” 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 104.21, lower by 0.17%. Brent crude futures, the global oil benchmark, fell 0.75% to $81.10 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 425.14 points or 0.53% lower at 79,723.74 points. The broader NSE Nifty was down 120.65 points or 0.49% to 24,292.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on July 24 as they offloaded shares worth ₹5,130.90 crore, according to exchange data.