The rupee had edged up 1 paisa to close at 83.49 against the U.S. dollar on Tuesday ahead of the key testimony of US Federal Reserve Chair Jerome Powell in front of Congress. File.
| Photo Credit: Reuters

The rupee traded flat at 83.49 against the U.S. currency in the early session on July 10 amid losses in domestic equities and easing crude oil prices.

At the interbank foreign exchange market, the rupee opened flat at 83.49 against the U.S. dollar. The local currency moved in a restricted range of 83.49 to 83.50 against the greenback in early trade.

The rupee had edged up 1 paisa to close at 83.49 against the U.S. dollar on Tuesday ahead of the key testimony of US Federal Reserve Chair Jerome Powell in front of Congress.

Powell’s testimony offered little new guidance on the US central bank’s plans for when it might cut interest rates.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, eased 0.03% from overnight high levels to 105.09.

Brent crude, the global oil benchmark, declined 0.26% to $84.44 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex dropped by 143.15 points or 0.18% to close at 80,208.49. The broader NSE Nifty declined 27.20 points, or 0.11%, to 24,406.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth ₹314.46 crore, according to exchange data.

 On Wednesday, the domestic currency settled 7 paise higher at 83.44 against the dollar. File.
| Photo Credit: Reuters

The rupee inched up 1 paisa to 83.43 against the U.S. dollar in early trade on June 6 on the back of a weak American currency and positive domestic equity markets.

Forex traders said an upward movement in the crude oil prices resisted a sharp rise in the Indian currency even as investors moved cautiously ahead of the RBI’s monetary policy decision to be announced on Friday.

At the interbank foreign exchange market, the local unit opened at 83.40 and slipped to 83.43 against the greenback, trading 1 paisa higher from its previous close.

On Wednesday, the domestic currency settled 7 paise higher at 83.44 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15% lower at 104.06.

Analysts attributed the weakness in the dollar index to a sharp fall in US Treasury yields after the latest data showed private sector job growth in May was slower than estimated, raising expectations of an interest rate cut by the US Federal Reserve.

They said that market participants are expected to take further cues from the weekly U.S. jobs data to be released later in the day. Also, they said the decision of RBI’s rate-setting panel to impact investors’ sentiment.

The Monetary Policy Committee (MPC) of RBI on Wednesday started its three-day deliberations to decide the next monetary policy. Reserve Bank Governor Shaktikanta Das will announce the decisions on Friday.

“The Reserve Bank of India is set to keep its repo rate at 6.5 per cent at its June 7 review. Policy is turning more restrictive as cooling inflation pushes up real rates, hurting growth,” said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.

He further said the RBI’s record dividend payment of Rs 2.1 lakh crore to the government for FY24 may alleviate concerns about the growth outlook.

Brent crude futures, the global oil benchmark, advanced 0.38% to $78.71 per barrel.

On the domestic equity market, the 30-share BSE Sensex climbed 303.91 points or 0.41% to 74,686.15 in early trade. The NSE Nifty went up 70.25 points or 0.31% to 22,690.60.

Foreign investors were net sellers of Indian equities on Wednesday as they offloaded shares worth ₹5,656.26 crore on a net basis. FIIs bought shares worth ₹21,012.72 crore and sold equities worth ₹26,668.98 crore in the cash segment.

India’s service sector growth eased to a five-month low in May amid fierce competition, price pressures and a severe heatwave, even as new orders from international markets expanded at the steepest pace in a decade, according to a monthly survey released on Wednesday.

The seasonally adjusted HSBC India Services Business Activity Index fell to 60.2 in May from 60.8 a month earlier, its lowest mark since last December.

File.
| Photo Credit: Reuters

The rupee pared initial gains and settled for the day 5 paise lower at 83.18 (provisional) against the U.S. dollar on May 28, amid a negative trend in domestic equities and on dollar demand from importer at lower levels.

Forex traders said the rupee consolidated in a narrow range as elevated crude oil prices weighed on investor sentiments, while the decline in U.S. dollar cushioned the downside.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.14 and touched an intra-day high of 83.10 and a low of 83.19.

The domestic unit finally settled for the day at 83.18 (provisional), down 5 paise from its previous close.

On Monday, the rupee pared its initial gains and settled for the day lower by 3 paise at 83.13 against the U.S. dollar.

“We expect the rupee to trade with a slight positive bias as strength in the domestic markets and expectations of fresh foreign inflows may support the rupee,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

Softening of the U.S. Dollar may also support the local unit. However, a rise in crude oil prices may cap sharp upside.

“Investors may remain cautious ahead of core PCE price index data later this week. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.47, lower by 0.12%, as investors trimmed their positions ahead of inflation data.

Brent crude futures, the global oil benchmark, rose 0.18% to $83.25 per barrel.

On the domestic equity market, the 30-share BSE Sensex declined 220.05 points, or 0.29%, to close at 75,170.45 points. The broader NSE Nifty fell 44.30 points, or 0.19%, to close at 22,888.15 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹541.22 crore, according to exchange data.

File
| Photo Credit: C. Venkatachalapathy

The rupee opened on a flat note against the U.S. dollar in early trade on May 14, weighed down by the strength of the American currency in the overseas market and elevated crude oil prices.

Forex traders said the rupee remains under pressure due to ongoing elections as well as foreign fund outflows and the same shall subside once the results are out.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.51 against the American currency, unchanged from its previous close.

On Monday, the rupee consolidated in a narrow range and settled flat at 83.51 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.26, higher by 0.04%.

Brent crude futures, the global oil benchmark, rose 0.13% to $83.47 per barrel.

“Overall, despite short-term pressures on the rupee, major global factors such as the Israel-Iran conflict and oil prices are stabilising. Consequently, with the Lok Sabha elections passing and internal factors aligning, the rupee is poised to strengthen based on its strong fundamentals,” CR Forex Advisors MD Amit Pabari said.

On the macroeconomic front, India’s retail inflation eased to an 11-month low of 4.83% in April, as prices of some kitchen items declined though the overall food basket firmed up marginally, according to government data released on Monday.

The Consumer Price Index (CPI)-based retail inflation was 4.85% in March. It was 4.7% in April 2023.

“India’s inflation eases mildly, however, the food remains elevated with inflation in some items like vegetables, pulses etc remaining in double-digit, thereby giving lesser leeway to RBI for a prospective rate reduction anytime soon,” Pabari said.

On the domestic equity market, the 30-share BSE Sensex was trading 31.16 points, or 0.04% higher at 72,807.29 points. The broader NSE Nifty was up 14.15 points, or 0.06%, to 22,118.20 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹4,498.92 crore, according to exchange data.

File.
| 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.

File.
| Photo Credit: C. Venkatachalapathy

The rupee appreciated by 3 paise to close at 83.33 (provisional) against the U.S. dollar on April 23 on positive domestic markets and a soft American currency.

At the interbank foreign exchange market, the local unit opened at 83.37 against the greenback. The unit hit an intra-day high of 83.28 and a low of 83.39 against the greenback.

The domestic unit finally settled at 83.33 (provisional) against the dollar, 3 paise higher from its previous close.

On Monday, the rupee appreciated by 8 paise to close at 83.36 against the U.S. dollar.

“Indian rupee appreciated on Tuesday on weak US dollar and positive domestic markets. However, a recovery in crude oil prices and FII outflows capped sharp gains,” 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 0.01 per cent lower at 106.06, on easing tensions between Israel and Iran.

Brent crude futures, the global oil benchmark, advanced 0.29% to $87.25 per barrel.

“We expect the rupee to trade with a slight positive bias on improved global risk sentiments and easing of geopolitical tensions in the Middle East,” Choudhary said.

Easing dollar on strong euro and pound amid mixed to positive PMI data from Europe also supported the rupee.

“However, any fresh aggressions in the Middle East may cap sharp upside. Traders may take cues from PMI data from US. Investors may remain cautious ahead of inflation data from US later this week. USD-INR spot price is expected to trade in a range of Rs 83.10 to Rs 83.50,” Choudhary added.

On the domestic equity market front, Sensex advanced 89.83 points, or 0.12%, to settle at 73,738.45 points. The Nifty rose 31.60 points, or 0.14%, to close at 22,368.00 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹2,915.23 crore, according to exchange data.

File.
| Photo Credit: C. Venkatachalapathy

The rupee appreciated 5 paise to 83.39 against the U.S. dollar in early trade on April 22, supported by a firm trend in domestic equities.

Forex traders said the local unit gained ground as the American currency and crude oil prices retreated from their elevated levels.

At the interbank foreign exchange market, the local unit opened at 83.40 against the greenback. It later touched 83.39 in initial trade, registering a rise of 5 paise from its previous close.

On Friday, the rupee appreciated 8 paise to close at 83.44 against the U.S. dollar.

Forex traders said there was likely some intervention by the Reserve Bank of India which resulted in the pullback of the local unit.

“The Indian forex reserves fell to USD 643.162 billion after rising for 7 weeks in succession as the Reserve Bank of India (RBI) would have sold dollars to rein in the rupee,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, India’s forex reserves dropped by $5.401 billion to $643.162 billion for the week ended April 12, the Reserve Bank said on Friday. The overall reserves increased $2.88 billion to a new high of $648.562 billion in the previous reporting week.

“The RBI will be present to keep a tab over the depreciation while oil companies and FPIs buy dollars,” Bhansali said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 106.07, lower 0.07%.

Brent crude futures, the global oil benchmark, fell 0.76% to $86.63 per barrel.

On the domestic equity market front, the 30-share BSE Sensex climbed 295.86 points or 0.40% to 73,384.19 in early trade. The NSE Nifty advanced 106.00 points or 0.48% to 22,253.00.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹129.39 crore, according to exchange data.

File.
| 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.

File.
| Photo Credit: AFP

The rupee appreciated 12 paise to close at 83.19 (provisional) against the U.S. dollar on April 10, as equity benchmarks climbing to all-time high levels and a weak greenback against major currencies overseas boosted investor sentiment.

Forex traders said the rising appetite for riskier assets supported the local currency.

At the interbank foreign exchange market, the local unit opened at 83.23 against the greenback. The unit hit an intraday high of 83.15.

The domestic unit finally settled at 83.19 (provisional) against the dollar, 12 paise higher from its previous close.

On Monday, the rupee settled flat at 83.31 against the US dollar.

Forex and money markets were closed on Tuesday on account of ‘Gudhipadwa’.

“We expect the rupee to trade with a slight positive bias on positive tone in the domestic markets and some softness in the US Dollar. The easing of crude oil prices from higher levels may also support the domestic currency.

“However, any re-escalation of tensions in the Middle East may cap the upside. Traders may remain cautious ahead of inflation data and FOMC meeting minutes from the US. A hot inflation data may lead to a bounce back in the US dollar while softening of inflation may ease the greenback further,” 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 0.09% lower at 104.05.

Brent crude futures, the global oil benchmark, rose 0.31% to $89.70 per barrel.

On the domestic equity market front, the Sensex climbed 354.45 points to settle above the 75,000 mark for first time, and the Nifty jumped 111.05 points to record 22,753.80.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹593.20 crore, according to exchange data.

File.
| Photo Credit: C. Venkatachalapathy

The rupee depreciated 6 paise to 83.45 against the U.S. dollar in early trade on April 5, as market participants remained cautious ahead of the announcement of the Reserve Bank of India’s rate-setting panel’s decision.

Forex traders said the local unit was also weighed down by a strong American currency and elevated crude oil prices. Moreover, a negative trend in domestic equities and sustained foreign fund outflows also dented investor sentiments.

According to interbank foreign exchange, the rupee opened at 83.44 against the dollar and touched a low of 83.45 in the initial trade, registering a fall of 6 paise over its previous close.

On Thursday, the rupee recovered 14 paise to close at 83.39 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 Wednesday 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) is scheduled to be announced later in the day.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.33, higher by 0.20%.

Brent crude futures, the global oil benchmark, rose 0.40% to $91.01 per barrel.

Forex traders said the rupee is likely 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.

On the domestic equity market, the 30-share BSE Sensex was trading 107.27 points, or 0.14% lower at 74,120.36 points. The broader NSE Nifty was down 50.05 points, or 0.22%, to 22,464.60 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹1,136.47 crore, according to exchange data.

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.