On October 23, 2024, the Rupee had settled with a marginal gain of one paisa at 84.07 against the U.S. dollar. File
| Photo Credit: The Hindu

The Rupee stayed stuck at its near-record low of 84.07 (provisional) against the U.S. dollar on Thursday (October 24, 2024) as surging crude oil prices and persistent foreign fund outflow weighed on the local unit.

Analysts said the selling rush by foreign investors in pursuit of better gains from the Chinese market has been preventing the Rupee’s recovery, while higher U.S. treasury yields have triggered the fear of slower interest rate cut by the Federal Reserve. “Also, uncertain geopolitical scenario ahead of the U.S. Presidential election steered investors towards safe-haven bets,” they added.

At the interbank foreign exchange market, the domestic unit opened at 84.06 against the greenback and remained almost standstill throughout the session. The unit finally settled at the previous session’s closing level of 84.07 (provisional) against the dollar. On Wednesday (October 23, 2024), the Rupee had settled with a marginal gain of one paisa at 84.07 against the U.S. dollar.

The local currency has been struggling to recover since October 11, when it closed at its lowest level of 84.10 against the dollar. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the Rupee traded on a flat note amid weak domestic markets and overnight gains in crude oil prices.

“The Rupee is expected to trade with a negative bias on overall strength in the U.S. dollar and FII outflows,” he added. “Traders may take cues from weekly unemployment claims, PMI and new home sales data from the U.S. USD-INR spot price is expected to trade in a range of ₹83.90 to ₹84.30,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell slightly by 0.21% but remained elevated at 104.05. Brent crude, the international benchmark, surged 2.03% to $76.43 per barrel in futures trade.

On the domestic equity market front, Sensex fell 16.82 points or 0.02% to settle at 80,065.16 points. The Nifty also dipped 36.10 points or 0.15% to 24,399.40 points. Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday (October 23, 2024), as they offloaded shares worth ₹5,684.63 crore, according to exchange data.

The rupee strengthened by 6 paise to 83.26 against the U.S. dollar in early trade on September 20 on easing global crude oil prices and rising appetite for riskier assets.

However, a sell-off in the domestic equity markets and a strong American currency against major rivals overseas restricted the rupee’s rise, traders said.

At the interbank foreign exchange, the domestic unit opened at 83.22 against the dollar and then slipped to 83.26, registering a gain of 6 paise over its previous close.

In the initial trade, the domestic unit was moving in a tight range of 83.27-83.22 against the American currency.

In the previous session on September 18, the rupee had settled at an all-time low of 83.32 against the dollar.

Currency markets were closed on September 19 on account of Ganesh Chaturthi.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was almost unchanged at 104.83.

Brent crude futures, the global oil benchmark, fell 1% to $93.40 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 307.27 points or 0.45% lower at 67,289.57. The broader NSE Nifty declined 100.75 points or 0.5% to 20,032.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on September 18 as they sold shares worth ₹1,236.51 crore, according to exchange data.

Representational image.
| Photo Credit: The Hindu

The Rupee appreciated by 10 paise to 82.93 against the U.S. dollar in early trade on September 12, tracking a positive trend in domestic equities and foreign fund inflows.

Forex traders said the Rupee is trading in a narrow range as the soft U.S. dollar and positive domestic markets provided support, while concerns over global economic slowdown and rising expectations of a rate hike by FOMC amid strong economic data from the U.S. may cap sharp gains for the local unit.

At the interbank foreign exchange, the domestic unit opened at 82.93, registering a rise of 10 paise over its last close.

On Monday, the Rupee closed on a flat note at 83.03 against the American currency. In the initial trade, the Rupee also touched a low of 83 against the greenback.

“Major crosses have been weighed down in the last few weeks following broader strength in the dollar. Safe haven buying in the greenback is also witnessed as economic concerns in China continue to weigh on the overall market sentiment,” Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

Mr. Somaiya further said that “we expect the USDINR (spot) to trade sideways and quote in the range of 82.80 and 83.20”.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.02% to 104.55. Brent crude futures, the global oil benchmark, rose 0.39% to $90.99 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 310.36 points or 0.46% higher at 67,437.44. The broader NSE Nifty advanced 80.40 points or 0.4% to 20,076.75.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth ₹1,473.09 crore, according to exchange data.