At the interbank foreign exchange, the rupee opened at an all-time low of 84.23 against the greenback, registering a fall of 14 paise over its previous close. File
| Photo Credit: The Hindu

The rupee fell 14 paise to an all-time low of 84.23 against the U.S. dollar in early trade on Wednesday (November 6, 2024), dragged down by persistent foreign fund outflows and the strength of the American currency in the overseas market.

Forex traders said with the U.S. election underway, markets are already showing signs of volatility — a trend likely to calm once a clear winner emerges in this tightly contested race.

Also Read: U.S. Elections 2024 results update November 6, 2024

Moreover, the U.S. Fed is expected to announce a rate cut in a meeting scheduled later this week, with further easing of up to 100 basis points projected for 2025.

At the interbank foreign exchange, the rupee opened at an all-time low of 84.23 against the greenback, registering a fall of 14 paise over its previous close.

On Tuesday (November 5, 2024), the rupee settled 2 paise higher at 84.09 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 1.64% higher at 105.11.

“The dollar index rose after Trump went up in the U.S. election initial results and was also leading in the Senate and House,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Brent crude, the global oil benchmark, fell 0.98% to $74.79 per barrel in futures trade.

“All will depend on RBI as to where it will allow the rupee to open and how it will move depending on intra-day election results. Wide range for rupee would be 84.00 to 84.35,” Bhansali said.

On the domestic equity market front, Sensex advanced 390.93 points, or 0.49%, to 79,867.56 points. The Nifty jumped 135.60 points, or 0.56%, to 24,348.90 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday (November 5, 2024), as they offloaded shares worth Rs 2,569.41 crore, according to exchange data.

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback; it rose 1 paisa to 84.07 in initial trade. File
| Photo Credit: The Hindu

The rupee opened on a flat note and rose 1 paisa to 84.07 against the U.S. dollar in initial deals on Thursday (October 31, 2024), as strong dollar and persistent foreign fund outflows dented investor sentiments.

Forex traders said that the rupee remained range-bound as month-end demand kept the U.S. dollar well-bid.

“Moreover, a muted trend in domestic equities weighed on the local unit, while any intervention by the Reserve Bank of India (RBI) may support the local currency at lower levels,” they said.

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback; it rose 1 paisa to 84.07 in initial trade.

On Wednesday (October 30, 2024), the rupee depreciated 3 paise to close at 84.08 against the U.S. dollar.

The local currency has been hovering around its all-time low level. The rupee touched its lowest closing level of 84.10 against the dollar on October 11.

“The rupee has been trading below the 84-level for the majority of October, but the recent pressure is primarily due to domestic factors, notably month-end dollar demand from local oil companies,” CR Forex Advisors MD Amit Pabari said.

However, upcoming IPO inflows may offer the rupee some relief as companies like Swiggy, Acme Solar Holdings, and Sagility Limited prepare to raise funds next week.

“As a result, we anticipate the USD-INR pair to remain within a narrow range of 83.80 to 84.20, with RBI interventions offering critical support to prevent any significant downside,” Mr. Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.14, higher by 0.14%.

Brent crude, the global oil benchmark, was up 0.48% to $72.90 per barrel in futures trade.

On the domestic equity market front, Sensex declined 163.76 points, or 0.20%, to 79,778.42 points. The Nifty fell 32.00 points, or 0.13%, to 24,308.85 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday (October 30, 2024), as they offloaded shares worth ₹4,613.65 crore, according to exchange data.

On the macroeconomic front, the output of eight key infrastructure sectors expanded by 2% in September, though the growth was slower than the 9.5% registered in the same month last year, according to official data released on Wednesday (October 30, 2024).

The Centre’s fiscal deficit at the end of the first half of financial year FY25 touched 29.4% of the full-year target, government data showed on Wednesday (October 30, 2024).

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. In the initial trade, it touched 84.07, registering a rise of 1 paisa over its previous close. File
| Photo Credit: The Hindu

The rupee witnessed range-bound trade and appreciated by just 1 paisa to 84.07 against the U.S. dollar in initial deals on Monday (October 28, 2024), weighed down by significant foreign fund outflows and the strength of the American currency in the overseas market.

Forex traders said the rupee is likely to trade in a narrow range during the day as the strong dollar weighs on the local unit, while positive domestic equities, weak crude oil prices and any intervention by the Reserve Bank of India (RBI) may also support the local currency at lower levels.

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. In the initial trade, it touched 84.07, registering a rise of 1 paisa over its previous close.

On Friday (October 25, 2024), the rupee edged lower by just 1 paisa to settle near an all-time low at 84.08 against the U.S. dollar.

The local currency touched its lowest closing level of 84.10 against the dollar on October 11, 2024.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28% lower at 104.54.

Brent crude, the global oil benchmark, eased 4.39% to $72.71 per barrel in futures trade.

According to traders, the rupee remains under intense pressure, mainly due to persistent foreign fund outflows.

According to CR Forex Advisors MD Amit Pabari, the rupee continues to hover around the 84 mark, a trend largely driven by the stronger dollar index through most of October.

“Given the lighter data schedule and Diwali festivities, trading volumes are likely to stay subdued this week. However, pressure on the rupee is expected to persist until FII outflows ease, fuelled in part by high valuations in Indian equities,” Mr. Pabari noted.

‘The USD-INR pair is anticipated to trade within a narrow range of 83.80 to 84.20, with downside support from the RBI’s reserves,” he added.

On the domestic equity market front, Sensex advanced 209.10 points, or 0.26%, to 79,611.39 points. The Nifty rose 13.55 points, or 0.06%, to 24,194.35 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday (October 25, 2024) Mr. Pabari, as they offloaded shares worth ₹3,036.75 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped by $2.163 billion to $688.267 billion for the week ended October 18, the Reserve Bank said on Friday (October 25, 2024).

In the previous reporting week, the overall kitty had dropped by $10.746 billion to $690.43 billion in one of the largest declines in the reserves in recent times, the RBI said on Friday (October 25, 2024).

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and slipped 1 paisa to trade at the previous day’s closing level in initial deals. File
| Photo Credit: The Hindu

The rupee stayed flat at 84.07 against the U.S. dollar in early trade on Thursday (October 24, 2024) amid elevated crude oil prices and continuous withdrawal of foreign funds from the capital market.

However, the local unit found some cushion as the dollar retreated from its higher level while the domestic equity markets indicated a recovery, forex traders said.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and slipped 1 paisa to trade at the previous day’s closing level in initial deals.

On Wednesday (October 23, 2024), the rupee had settled with a marginal gain of 1 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.

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.

Amid uncertain geopolitics, weeks ahead of the U.S. presidential election also steered investors towards safe-haven bets, they said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.07% but remained elevated at 104.20.

Brent crude, the international benchmark, rose 1.27% to $75.91 per barrel in futures trade.

On the domestic equity market front, Sensex rose 68.86 points, or 0.09%, to 80,150.84 points. The Nifty slipped 23.50 points, or 0.10%, to 24,412.00 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 dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 103.59.
| Photo Credit: The Hindu

The rupee witnessed range-bound trade and appreciated 3 paise to 83.99 against the U.S. dollar in initial deals on Thursday (October 17, 2024), as suspected RBI intervention coupled with softer oil prices supported the rupee at lower levels.

Forex traders said the rupee is likely to trade in a narrow range during the day as a strong dollar and a muted tone in the domestic equities weighed on the local unit, while weak crude oil prices and any intervention by the Reserve Bank of India (RBI) may also support the local currency.

At the interbank foreign exchange, the rupee opened at 84.01 against the greenback. In the initial trade, it touched 83.99, registering a rise of 3 paise over its previous close.

On Wednesday (October 16, 2024), the rupee witnessed a range-bound trade and strengthened marginally by 2 paise to 84.02 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 103.59.

Brent crude, the global oil benchmark, rose marginally by 0.26% to $74.41 per barrel in futures trade.

“India’s trade deficit shrank significantly in September, falling to $20.78 billion from a ten-month high of $29.65 billion in August. A narrowing trade gap eases some of the pressure on the rupee, providing it with a temporary cushion,” CR Forex Advisors MD Amit Pabari said.

Adding to the optimism, oil prices have recently dipped by 5%, driven by weaker global demand and easing tensions in the Middle East, Pabari added.

Additionally, all eyes will be on the ECB monetary policy meeting and key US economic data points, which may further influence the rupee’s trajectory, he added.

On the domestic equity market front, Sensex declined 281.66 points, or 0.35% , to 81,219.70 points. The Nifty fell 129.35 points, or 0.52%, to 24,841.95 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday (October 16, 2024), as they offloaded shares worth ₹ 3,435.94 crore, according to exchange data.

On the macroeconomic front, the country’s merchandise exports rose marginally by 0.5% to $34.58 billion in September, while the trade deficit narrowed to a five-month low at $20.78 billion.

According to official data released on Wednesday (October 16, 2024), imports increased by 1.6% to $55.36 billion in September compared to $54.49 billion in the year-ago period.