The rupee on April 04 recovered 9 paise to close at 83.44 (provisional) against the U.S. dollar, tracking a firm trend in domestic markets and upbeat macroeconomic data.

A weak U.S. dollar against major crosses overseas also supported the domestic unit. However, elevated crude oil prices and sustained foreign fund outflows capped the sharp gain, forex traders said.

Moreover, market participants remained cautious ahead of the Reserve Bank’s rate-setting panel’s decision to be announced on April 05, they added.

At the interbank foreign exchange market, the local unit opened at 83.44 against the greenback. The unit hit an intra-day high of 83.42 and a low of 83.46.

The local unit finally settled at 83.44 (provisional) against the dollar, higher by 9 paise from its previous close.

On April 03, the rupee depreciated 11 paise to close at 83.53 against the U.S. dollar.

Traders said market participants are awaiting the RBI MPC policy decision for further cues. The Reserve Bank’s rate-setting panel on April 03 started its three-day deliberations on the next set of monetary policy.

The decision taken at the meeting of the Reserve Bank Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) will be announced on April 5.

“We expect the rupee to trade with a slight negative bias on the surge in crude oil and gold prices. Renewed geopolitical tensions in the Middle East and selling pressure from FIIs may also weigh on the rupee. However, strength in the domestic equities and reports of selling of dollars by RBI may support the rupee at lower levels,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.16% lower at 104.08 on disappointing services PMI from the U.S. and dovish Fedspeak.

U.S. ISM services PMI fell to 51.4 in March 2024 vs 52.6 in February 2024. Meanwhile, Fed Chair Jerome Powell reiterated his wait-and-watch stance and said that the central bank needs more confidence that inflation is moving lower sustainably.

Brent crude futures, the global oil benchmark, fell 0.13% to $89.23 per barrel.

On the domestic equity market front, Sensex advanced 350.81 points, or 0.47%, to close at an all-time high of 74,227.63. The Nifty jumped 80.00 points, or 0.36%, to settle at its lifetime high of 22,514.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on April 03 as they offloaded shares worth ₹2,213.56 crore, according to exchange data.

Meanwhile, on the domestic macroeconomic front, India’s services sector witnessed one of the strongest growth rates in over 13-and-a-half years in March on the back of strong demand that spurred sales and business activity, a monthly survey said on April 04.

Image for representation only
| Photo Credit: C. Venkatachalapathy

The rupee appreciated 3 paise to 82.99 against the U.S. dollar in early trade on Thursday, amid a positive trend in domestic equities.

Forex traders said rupee is trading in a narrow range as strong American currency and elevated crude oil prices weighed on the local unit and restricted the uptick in the domestic unit.

At the interbank foreign exchange, the domestic currency opened at 83.00, then touched 82.99 against the greenback in initial deals, registering a rise of 3 paise from its previous close.

On Wednesday, the rupee appreciated 6 paise to close at 83.02 against the U.S. dollar.

“In the ongoing tug-of-war between positive and negative factors influencing the market, there is a tilt towards the positive aspects favouring the rupee,” CR Forex Advisors MD- Amit Pabari said.

Momentum suggests the pair will likely consolidate within the narrow range of 82.80 to 83.10, with any upward movement above 83 seen as a selling opportunity, Mr. Pabari said.

“Overall, market sentiment was buoyed by the rupee’s stronger fundamentals, supported by expectations of higher growth rates and controlled inflation,” Mr. Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 104.69.

Brent crude futures, the global oil benchmark, declined 0.49% to $81.20 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 86.23 points or 0.12% higher at 71,909.06 points. The broader NSE Nifty advanced 57.90 points or 0.27% to 21,897.95 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹3,929.60 crore, according to exchange data.

Representational image of a man counting money
| Photo Credit: Reuters

The rupee depreciated 4 paise to 83.12 against the U.S. dollar in early trade on Wednesday, tracking a negative trend in domestic equities.

Forex traders said the strength of the American currency and elevated crude oil prices in the international market dented investors’ sentiments.

At the interbank foreign exchange, the rupee opened at 83.11 against the dollar and touched an early low of 83.12 and a high of 83.09 in initial trade.

On Tuesday, the rupee depreciated 8 paise to close at 83.08 against the U.S. dollar.

“The Indian rupee is expected to fall to 83.08 as all risk assets fell against the mighty dollar with Gold also falling below $2,000 per ounce to $1,991.51. Flows should continue in the currency thus keeping it range bound after the lower opening,” 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 104.81, lower 0.14%.

Brent crude futures, the global oil benchmark, fell 0.16% to $82.64 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 617.81 points or 0.86% lower at 70,937.38 points. The broader NSE Nifty was down 180.50 points or 0.83% to 21,562.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹376.32 crore, according to exchange data.

The rupee pared initial gains to settle 2 paise lower at 83.03 (provisional) against the U.S. dollar on Thursday, weighed down by a surge in crude oil prices and strong American currency overseas.

However, a positive trend in domestic markets cushioned the downside for the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened at 82.98 against the U.S. dollar and moved in a range of 82.93 and 83.04.

The rupee finally settled at 83.03 (provisional) against the U.S. dollar, down 2 paise from its previous close.

On Wednesday, the rupee closed at 83.01 against the U.S. currency.

“The Indian rupee fell on Thursday on a positive U.S. Dollar and rising crude oil prices. This may impact the external payments.

“However, the positive tone of domestic equities prevented a sharp fall in the domestic currency. The U.S. Dollar gained on hotter than expected CPI raised rate hike concerns,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.01% to 104.77.

Brent crude futures, the global oil benchmark, advanced 0.70% to $92.52 per barrel.

“We expect the rupee to trade with a slight negative bias on expectations that the U.S. Dollar may rise further. Elevated crude oil prices and selling pressure from foreign investors may put further pressure on the rupee,” Mr. Choudhary said.

However, any intervention by the Reserve Bank of India and positive domestic markets may support the rupee at lower levels, Mr. Choudhary said, adding that traders may remain cautious ahead of retail sales and PPI data from the U.S., expected to be softer than the previous month.

On the domestic equity market front, the 30-share BSE Sensex closed 52.01 points or 0.08% higher at 67,519.00. The broader NSE Nifty advanced 33.10 points or 0.16% to 20,103.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹1,631.63 crore, according to exchange data.

The rupee rates in the last six days.
| Photo Credit: PTI

The rupee snapped a four-day losing streak to close 24 paise higher at 82.99 (provisional) against the U.S. dollar on Friday, helped by a firm trend in domestic equities and suspected intervention by the RBI.

Besides, the local unit appreciated after the Reserve Bank announced the discontinuation of incremental cash reserve ratio in a phased manner by October 7, 2023, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.13 against the U.S. dollar and moved in a range of 82.91 to 83.17 in the day trade.

The rupee finally settled 24 paise higher at 82.99 (provisional) against the previous close.

On Thursday, the rupee depreciated 10 paise to its lifetime low of 83.23 against the U.S. dollar.

The rupee appreciated by 25 Paisa on Friday as the Reserve Bank of India (RBI) has discontinued the incremental cash reserve ratio in a phased manner by October 7, 2023, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Mr. Choudhary further said that reports of the RBI intervention in the forex markets to protect the rupee ahead of the G20 meeting also supported the domestic currency.

Positive domestic markets and softening of crude oil prices at higher levels also supported the rupee.

“We expect the rupee to trade with a slight positive bias on positive domestic equities and intervention by the RBI. However, overall strong Dollar and elevated crude oil prices may cap the upside.”

“Traders may take a cautious approach ahead of U.S. CPI inflation next week, which is expected to remain higher. USD/INR spot price is likely to trade in a range of ₹82.40 to ₹83.50,” Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04% to 105.01.

Brent crude futures, the global oil benchmark, advanced 0.61% to $90.47 per barrel.

On the domestic equity market front, the BSE Sensex closed 333.35 points or 0.50% higher at 66,598.91. The broader NSE Nifty advanced 92.90 points or 0.47% to 19,819.95.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹758.55 crore, according to exchange data.