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| Photo Credit: K. Pichumani

The rupee consolidated in a narrow range and settled for the day higher by 1 paisa at 83.30 against the U.S. dollar on April 24, as the support from positive domestic equities was negated by rising American currency.

Forex traders said elevated crude oil prices and significant foreign fund outflows in the international market dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.29 against the greenback. The unit hit an intra-day high of 83.26 and a low of 83.33 against the greenback.

The domestic unit finally settled at 83.30 (provisional) against the dollar, 1 paisa higher from its previous close.

On Tuesday, the rupee closed at 83.31 against the American currency.

Forex traders said the rupee is expected to trade with a slight positive bias on improved global risk sentiments and easing of geopolitical tensions in the Middle East. However, any fresh aggressions in the Middle East may cap gains for the local unit.

Brent crude futures, the global oil benchmark, fell 0.34% to $88.12 per barrel.

“Geopolitical risks in the Middle East and talks of fresh energy sanctions on Iran could see some occasional hiccups in prices to move higher but we don’t expect prices to sustain USD 85 for a short duration,” said Mohammed Imran – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.84, higher by 0.16%.

“We expect the rupee to trade with a slight positive bias on rise in risk appetite in global markets and easing geopolitical tensions in the Middle East. However, hawkish comments from the Fed may support the dollar at lower levels,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

However, any fresh aggressions in the Middle East may cap sharp upside. Traders may take cues from durable goods orders data from the US. Investors may remain cautious ahead of inflation data later this week. USD-INR spot price is expected to trade in a range of Rs 83.05 to Rs 83.50, Choudhary added.

On the domestic equity market front, Sensex advanced 114.49 points, or 0.16%, to settle at 73,852.94 points. The Nifty rose 34.40 points, or 0.15%, to close at 22,402.40 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹3,044.54 crore, according to exchange data.

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| Photo Credit: Reuters

The rupee depreciated 14 paise to close at 83.57 (provisional) against the U.S. dollar on April 16, weighed down by a negative trend in domestic equities and a strong greenback against major crosses overseas amid geopolitical tensions.

Forex traders said a weak appetite for riskier assets and recent foreign capital outflows also dragged down the local unit.

At the interbank foreign exchange market, the local unit opened at 83.51 and finally settled at 83.57 (provisional), registering a loss of 14 paise from its previous close.

On Monday, the rupee declined 6 paise to settle at 83.44 against the US dollar.

According to Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, the 10-year US bond yields rose to 4.66 per cent, the highest since November 2023. Weak domestic markets and simmering geopolitical tensions too weighed on the rupee.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 106.23.

The U.S. dollar rose to a five-month high, following weak yuan, retail sales and safe-haven demand amid Iran-Israel tensions, Choudhary added.

Brent crude futures, the global oil benchmark, declined 0.40 per cent to USD 89.74 per barrel.

“We expect the rupee to remain weak amid ongoing geopolitical uncertainties which could impact risk currencies and a surge in the US dollar. Rising global crude oil prices and a surge in US treasury yields amid expectations of a delay in rate cut in the US may also pressurise the rupee. Markets will take cues from Israel’s response to the attack by Iran.

“Any further escalation would strengthen the dollar, while any signs of de-escalation would lead to some easing. Traders may take cues from building permits; housing starts and industrial production data from the US. USD/INR spot price is expected to trade in a range of Rs 83.30 to Rs 83.80,” Choudhary added.

On the domestic equity market front, Sensex declined 456.10 points, or 0.62%, to settle at 72,943.68 points. The Nifty fell 124.60 points, or 0.56%, to close at 22,147.90 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 3,268.00 crore, according to exchange data.

On the macroeconomic front, wholesale inflation in the country rose marginally to a three-month high of 0.53% in March compared to 0.20% in the preceding month due to an increase in prices of vegetables, potatoes, onion, and crude oil.

Moreover, India’s merchandise exports dipped marginally in March to $41.69 billion, and by 3.11% during the last fiscal year to $437.06 billion, mainly due to continued geopolitical turmoil, and depressed global trade.

The rupee declined by 7 paise to close at 83.36 (provisional) against the U.S. dollar on March 27, tracking a strong American currency against major rivals overseas and weak Asian peers. File.
| Photo Credit: R. Ragu

The rupee declined by 7 paise to close at 83.36 (provisional) against the U.S. dollar on March 27, tracking a strong American currency against major rivals overseas and weak Asian peers.

However, a surge in domestic markets and a decline in crude oil prices cushioned the downside, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.33 and touched an intraday low of 83.45 against the greenback. The local unit finally settled at 83.36 (provisional) against the dollar, registering a loss of 7 paise from its previous close.

On March 26, the rupee recovered from all-time low levels and appreciated 32 paise to close at 83.29 against the U.S. dollar.

According to Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas, the Indian rupee depreciated on March 27 on strong U.S. dollar and importer demand for U.S. dollar. Weak Asian currencies also weighed on the rupee.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 104.26.

“We expect the rupee to trade with a slight negative bias on strength in the U.S. Dollar and weak Asian currencies. Demand for dollars from importers towards the end of the month may also weigh on the rupee.

“However, positive domestic markets may support the rupee at lower levels. Investors may watch out for core PCE deflator index data from the U.S. on Friday. USDINR spot price is expected to trade in a range of ₹83.10 to ₹83.60,” Mr. Choudhary said.

Brent crude futures, the global oil benchmark, fell 0.90% to USD 85.47 per barrel.

On the domestic equity market front, Sensex advanced 526.01 points, or 0.73%, to settle at 72,996.31 points. The Nifty rose 118.95 points, or 0.54%, to close at 22,123.65 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹10.13 crore, according to exchange data.

On the macroeconomic front, India’s current account deficit narrowed to USD 10.5 billion or 1.2% of GDP in the October-December quarter as against USD 11.4 billion or 1.3% in the preceding three months ending September, the Reserve Bank said on Tuesday.

On Tuesday, the rupee recovered from all-time low levels and appreciated 32 paise to close at 83.29 against the U.S. dollar. File.
| Photo Credit: C. Venkatachalapathy

The rupee was trading in a narrow range against the U.S. dollar in early trade on March 27, as the support from positive domestic equities was negated by strong American currency.

Forex traders said elevated crude oil prices in the international market dented investors’ sentiments.

At the interbank foreign exchange, the rupee opened at 83.33 against the dollar and touched an early low of 83.34 in initial trade, registering a fall of 5 paise over its previous close. It was later trading at 83.31 against the American currency.

On Tuesday, the rupee recovered from all-time low levels and appreciated 32 paise to close at 83.29 against the U.S. dollar.

“The Indian rupee is expected to be in a range with 83.40 being the Reserve Bank’s pivot beyond which the rupee could weaken further. It being month-end, quarter-end and year-end, some selling is expected to come in dollars, as exporters hedge their positions,” 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 104.38, higher by 0.08%.

Brent crude futures, the global oil benchmark, fell 0.90% to $85.47 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 338.22 points, or 0.47%, higher at 72,808.52 points. The broader NSE Nifty rose 102.15 points, or 0.46%, to 22,106.85 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 10.13 crore, according to exchange data.

On the macroeconomic front, India’s current account deficit narrowed to $10.5 billion or 1.2% of GDP in the October-December quarter as against $11.4 billion or 1.3% in the preceding three months ending September, the Reserve Bank said on Tuesday.

Forex, equity markets were closed on Monday on account of Holi. File.
| Photo Credit: Reuters

The rupee recovered from its all-time low level and appreciated 29 paise to 83.32 against the U.S. dollar in early trade on March 26.

At the interbank foreign exchange, the domestic currency opened at 83.33 and it gained ground and touched 83.32 against the greenback in initial deals, registering a gain of 29 paise from its previous close.

On Friday, the rupee depreciated 48 paise to settle at an all-time low of 83.61 against the American currency.

Forex, equity markets were closed on Monday on account of Holi.

Market analysts said, for the domestic unit, record Forex reserves provide a cushion, enabling the Reserve Bank to mitigate the rupee’s downside.

India’s forex reserves increased by $6.396 billion to $642.492 billion for the week ended March 15, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had risen by $10.47 billion to $636.095 billion.

“With RBI accumulating reserves they would endeavour to protect the rupee to some extent though overall their interest would be to protect exporters costing so that exports surge while imports come down and are replaced by indigenous production,” 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, fell by 0.01% to 103.79.

Brent crude futures, the global oil benchmark, declined 0.07% to $86.69 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 265.68 points or 0.36%t lower at 72,566.26 points. The broader NSE Nifty declined 60.95 points or 0.28% to 22,035.80 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹3,309.76 crore on a net basis, according to exchange data.

On Tuesday, the rupee depreciated 13 paise to 83.03 against the U.S. dollar. File.
| Photo Credit: Reuters

The rupee declined 13 paise to close at 83.16 (provisional) against the U.S. dollar on March 20, weighed down by a strong American currency against major rivals overseas and elevated crude oil prices.

However, a recovery in domestic equity markets and foreign fund inflows cushioned the downside, Forex traders said.

At the interbank foreign exchange market, the local unit opened at 83 and touched the intraday low of 83.17 against the greenback. The local unit finally settled at 83.16 (provisional) against the dollar, registering a loss of 13 paise from its previous close.

On Tuesday, the rupee depreciated 13 paise to 83.03 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28% higher at 104.11.

“The US Dollar strengthened on the weak Euro and Pound after disappointing inflation data. German PPI declined by 0.4 per cent in February 2024 vs forecast of (-) 0.1 per cent,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Brent crude futures, the global oil benchmark, fell 0.78% to $86.70 per barrel.

“We expect the rupee to trade with a negative bias on the strong U.S. Dollar and expectations of a bounce back in crude oil prices. However, positive global equities may support the domestic currency.

“Traders will watch out for the Federal Open Market Committee (FOMC) meeting outcome. Markets expect the monetary policy to remain unchanged but will look forward to Fed Chair Jerome Powell’s speech for further guidance and Fed’s Dot plot,” Choudhary added.

USD/INR spot price is likely to trade in a range of ₹82.90 to ₹83.40, he said.

On the domestic equity market front, Sensex advanced 89.64 points, or 0.12%, to settle at 72,101.69. The Nifty rose 21.65 points, or 0.1%, to close at 21,839.10.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹1,421.48 crore, according to exchange data.