A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad.
| Photo Credit: REUTERS

The rupee appreciated 25 paise to close at 86.33 (provisional) against the U.S. dollar on Wednesday (January 22, 2025), supported by positive domestic equities and soft U.S. dollar index.

Forex traders said the rupee is likely to witness high volatility with a negative bias ahead of key events in the global and domestic economic landscape.

Moreover, the overall uncertainty about the global economy continued to weigh on both currencies and commodities, keeping investors on edge.

At the interbank foreign exchange, the rupee opened at 86.56 against the greenback. During the day, the local unit touched an intraday high of 86.30 and a low of 86.71.

It finally closed at 86.33 (provisional) against the U.S. dollar, up 25 paise from its previous close.

On Tuesday (January 21, 2025), the rupee fell 13 paise to 86.58 against the U.S. dollar.

“We expect the rupee to remain largely weak on underlying strength in the U.S. dollar and overall weakness in the domestic markets. Importer demand for dollars may also pressurise the rupee. However, any extended sell-off in crude oil may support the rupee at lower levels,” Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, said.

Mr. Choudhary further noted that markets may see some volatility on incoming statements and announcements by the Trump administration. “USD-INR spot price is expected to trade in a range of 86.20 to 86.65,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.15% to 107.89 as traders pondered over the Trump Tariff Plan.

Brent crude, the global oil benchmark, rose 0.48% to $79.67 per barrel in futures trade.

Crude oil prices had fallen due to fears of tough US policies and had touched $78 per barrel, a 4% decline from recent highs following President Trump’s mention of increasing U.S. oil output.

In the domestic equity market, the 30-share BSE Sensex rose 566.63 points, or 0.75%, to settle at 76,404.99 points, while the Nifty rose 130.70 points, or 0.57%, to 23,155.35 points.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹5,920.28 crore, according to exchange data.

The Indian Rupee logo is seen inside the Reserve Bank of India (RBI) headquarters in Mumbai.
| Photo Credit: REUTERS

The rupee fell 3 paise to 84.83 against the U.S. dollar in early trade on Monday (December 16, 2024), dragged down by a muted trend in domestic equities and elevated crude oil prices.

Forex traders said the rupee remains in a weakening mode due to dollar demand from importers and foreign banks.

At the interbank foreign exchange, the rupee opened at 84.83 against the greenback, registering a fall of 3 paise over its previous close.

On Friday (December 13, 2024), the rupee rebounded from its all-time low level and settled with a gain of 8 paise at 84.80 against the U.S. dollar.

Over the past week, the Indian rupee faced depreciation following the Reserve Bank of India’s announcement of leadership transition.

The RBI kept a close eye on banking system liquidity and opted for a buy-sell swap to provide much-needed support to the rupee.

Additionally, Foreign Institutional Investors (FIIs) turning net buyers in December, following significant outflows in the past two months, is expected to lend further stability to the domestic currency, CR Forex Advisors MD Amit Pabari said.

Foreign Institutional Investors (FIIs) purchased ₹2,335.32 crore in the capital markets on net basis on Friday, according to exchange data.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.13% at 106.86.

Brent crude, the global oil benchmark, fell 0.34% to $74.24 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex was trading 78.29 points or 0.10% down at 82,054.83 points in morning trade, while Nifty was down 15.45 points or 0.06% to 24,752.85 points.

Meanwhile, India’s forex reserves dropped by $3.235 billion to $654.857 billion for the week ended December 6, the RBI said on Friday.

In the previous reporting week, the reserves had increased by $1.51 billion to $658.091 billion, ending a multi-week decline in the overall kitty.

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.

Forex traders said rupee trade was range-bound as the Reserve Bank of India (RBI) is maintaining a firm grip on the domestic currency.
| Photo Credit: The Hindu

The rupee witnessed range-bound trade and settled for the day higher by 6 paise at 83.90 (provisional) against the US dollar on Friday (September 13, 2024) supported by weakening of the American currency in the overseas market and significant foreign fund inflows.

Forex traders said rupee trade was range-bound as the Reserve Bank of India (RBI) is maintaining a firm grip on the domestic currency.

At the interbank foreign exchange market, the local unit opened at 83.92 and witnessed an intraday high of 83.85 and a low of 83.98 against the American currency.

The domestic unit finally settled for the day at 83.90 (provisional), higher by 6 paise over its previous close.

On Thursday (September 12, 2024), the local unit settled 3 paise higher at 83.96 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.46% to 100.90 points.

Brent crude, the international benchmark, gained 1.03% to USD 72.71 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 71.77 points, or 0.09%, to close at 82,890.94 points, while the Nifty fell 32.40 points, or 0.13%, to 25,356.50 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday (September 12, 2024), as they purchased shares worth ₹7,695.00 crore, according to exchange data.

On the domestic macroeconomic front, retail inflation in August inched up to 3.65%, though vegetables and pulses witnessed price rises in double digits, according to official data released on Thursday (September 12, 2024).

India’s industrial production output decelerated to 4.8% year-on-year in July 2024, mainly due to poor performance of the manufacturing and mining sectors, as per official data released on Thursday (September 12, 2024).

Image for representational purposes only.
| Photo Credit: REUTERS

The rupee traded in a narrow range to settle 4 paise higher at 83.95 (provisional) against the U.S. dollar on Thursday (September 12, 2024) amid a positive trend in domestic equities and foreign fund inflows.

Forex traders said the rupee trade was range-bound, with a slight positive bias toward positive domestic equities. However, a rebound in the U.S. Dollar and a surge in crude oil prices capped sharp gains.

The USD/INR pair traded within a well-defined range on active intervention by the Reserve Bank of India (RBI), they added.

At the interbank foreign exchange market, the local unit opened at 83.97 and witnessed an intraday high of 83.95 and a low of 83.99 against the American currency.

The domestic unit finally settled for the day at 83.95 (provisional), higher by 4 paise over its previous close.

On Wednesday (September 11, 2024), the rupee settled 1 paisa lower at 83.99 against the American currency.

“We expect the rupee to trade with a slight negative bias on the positive U.S. Dollar and a recovery in crude oil prices. However, a rise in risk appetite in global markets may support the rupee. Any intervention by the RBI may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Mr. Choudhary further noted that traders may take cues from India’s CPI data and European Central Bank (ECB) monetary policy. Investors may remain cautious ahead of the U.S. Federal Open Market Committee (FOMC) meeting next week.

Forex traders said risk sentiment has improved after the U.S. August CPI data. The U.S. headline CPI came in lower than expectations at 2.5% year-on-year. Core CPI came in line with expectations at 3.2%.

The stability in the U.S. CPI data helped the dollar index maintain its current levels.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.06% to 101.74 points.

Brent crude, the international benchmark, gained 1.71% to $71.82 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 1439.55 points, or 1.77%, to close at 82,962.71 points, while the Nifty climbed 470.45 points, or 1.89%, to 25,388.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth ₹1,755.00 crore, according to exchange data.

Forex traders said the crude oil level of $69 per barrel will act as a support for the domestic unit as India, the world’s third-largest oil importer, stands to benefit from cheaper oil.
| Photo Credit: The Hindu

The rupee traded in a narrow range on Wednesday (September 11, 2024) and appreciated 2 paise to 83.96 against the American currency, on easing crude oil prices and tracking its Asian peers.

Forex traders said foreign institutional inflows, alongside significant corrections in asset classes like the dollar index and crude oil prices, supported the rupee, while the Reserve Bank’s active intervention kept the rupee in a tight range.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.97 against the American currency and was at 83.96 in initial trade, registering a rise of 2 paise over its previous close.

On Tuesday (September 10, 2024), the rupee depreciated 3 paise to close at 83.98 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.21% to 101.42 points.

Brent crude, the international benchmark, was trading higher by 0.48% to $69.52 per barrel in futures trade.

Forex traders said the crude oil level of $69 per barrel will act as a support for the domestic unit as India, the world’s third-largest oil importer, stands to benefit from cheaper oil.

“The Indian rupee cannot remain in such a state for long as fundamentals clearly indicated gains for rupee with a fall in oil prices, good economic fundamentals, rise in Asian currencies and rising interest differentials should allow RBI to allow the rise in rupee,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Bhansali further said that over a longer term, 83.97 looks to be a good selling level for exporters despite a higher Real Effective Exchange Rate (REER), which the Reserve Bank may have to ignore for the moment. For the day, 83.90 to 84.05 should be the range.

On the domestic equity market, the 30-share BSE Sensex declined 104.25 points, or 0.13%, to 81,817.04, while the Nifty was down 33.05 points, or 0.13%, to 25,008.05.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth ₹2,208.23 crore, according to exchange data.

Image for representational purposes only.
| Photo Credit: REUTERS

The rupee traded in a narrow range on Tuesday (September 10, 2024) and depreciated 2 paise to close at 83.97 (provisional) against the American currency, weighed down by the strengthening of the American currency in the overseas market.

Forex traders said the U.S. dollar recovered amid mixed non-farm payrolls data. The slight recovery in crude oil prices also weighed on the rupee. However, a surge in the domestic markets cushioned the downside.

At the interbank foreign exchange market, the local unit opened at 83.95 against the American currency and finally settled at 83.97 (provisional) against the U.S. dollar, down 2 paise from its previous close.

On Monday (September 9, 2024), the rupee traded in a narrow range and closed flat at 83.95 against the American currency.

“We expect the rupee to trade with a slight negative bias on the strong US dollar and concerns over global economic growth. However, positive domestic markets and any intervention by the Reserve Bank of India (RBI) may support the rupee at lower levels,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Mr. Choudhary further noted that “investors may remain cautious ahead of the U.S. CPI and ECB monetary policy this week. “USDINR spot price is expected to trade in a range of 83.70 to 84.20,” he said.

On the domestic equity markets front, the Sensex climbed 361.75 points, or 0.44%, to settle at 81,921.29 points, while the Nifty rose 104.70 points, or 0.42%, to close at 25,041.10 points.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03% to 101.58.

Brent crude, the international benchmark, fell 1.16% to 71.01 in futures trade.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth ₹1,176.55 crore, according to exchange data.

A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad.
| Photo Credit: REUTERS

The rupee appreciated 10 paise to close at 83.87 (provisional) against the American currency on Thursday (August 29, 2024), supported by easing crude oil prices and a firm trend in domestic equities.

Forex traders said the market is awaiting cues from the U.S. GDP and the U.S. Personal Consumption Expenditure (PCE) inflation data, as this data point is crucial since 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 and touched an intra-day high of 83.84 against the U.S. dollar.

The domestic currency finally settled at 83.87 (provisional), 10 paise higher from its previous close.

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

According to Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, the rupee gained 10 paise, as expectations of interest rate cuts continue to provide support, preventing the rupee from falling below 84.00.

“The strong demand around 84.00 keeps the rupee buoyant, with resistance seen at 83.75. The rupee is expected to trade in a positive range between 84.00-83.70,” Mr. Trivedi said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11% higher at 101.20.

Brent crude, the global oil benchmark, declined 0.34% to $78.38 per barrel.

On the domestic equity market front, Sensex rose 349.05 points, or 0.43%, to close at 82,134.61 points. The Nifty closed 99.60 points, or 0.4%, up at 25,151.95 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth ₹1,347.53 crore, according to exchange data.

Image for representational purposes only.
| Photo Credit: REUTERS

The rupee was trading in a narrow range against the U.S. dollar in early trade on May 10, as the support from positive domestic equities was negated by elevated crude oil prices.

Forex traders said the strength of the American currency in the overseas market and significant foreign fund outflows dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.48, it touched 83.46 in the initial trade, registering a gain of 2 paise from its previous close.

On May 9, the rupee closed at 83.48 against the American currency.

“The Indian Rupee was again sold-off on May 9 as FPIs outflows continued to trigger demand for the U.S. dollar, while probable RBI selling at 83.50 did not allow a higher up move on the USD/INR pair. On May 10 also the same is expected from the USD/INR pair with RBI continuing its control at 83.50,” 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 105.30, higher by 0.07%.

Brent crude futures, the global oil benchmark, rose 0.5% to $84.34 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 169.82 points, or 0.23% higher at 72,573.99 points. The broader NSE Nifty was up 67.05 points, or 0.31%, to 22,024.55 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 9 as they offloaded shares worth ₹6,994.86 crore, according to exchange data.

“FPIs offloaded ₹22,858 crore in six market sessions in May 2024, while DIIs (Domestic Institutional Investors) were buyers to the tune of ₹16,700 crore. Uncertainty in election results and higher U.S. treasury yields were the main causes of this sell-off,” Mr. Bhansali added.

Image for representational purposes only.
| Photo Credit: Getty Images

The rupee rose 2 paise to 82.99 against the U.S. dollar in early trade on February 20, amid softening crude oil prices in the overseas market.

Forex traders said, however, a strong American currency, withdrawal of foreign funds and subdued equity market sentiment kept the local unit under pressure.

At the interbank foreign exchange, the domestic currency opened at 83.02 and inched up to 82.99 against the greenback in initial deals, registering a gain of 2 paise from its previous close.

On February 16, the rupee settled 4 paise higher at 83.01 against the U.S. dollar.

The currency derivatives market was closed on February 19 on account of Chhatrapati Shivaji Maharaj Jayanti.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.13% higher at 104.28.

Brent crude futures, the global oil benchmark, declined 0.13% to $83.45 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 164.66 points or 0.23% lower at 72,543.50 points. The broader NSE Nifty declined 44.45 points or 0.20% to 22,077.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on February 19 as they offloaded shares worth ₹754.59 crore, according to exchange data.