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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.

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The rupee declined 2 paise to 82.92 against the U.S. dollar in early trade on March 5, tracking a stronger American currency against major overseas rivals and outflow of foreign funds from domestic capital markets.

Though a downward trend in the crude oil prices cushioned the Indian currency, it was weighed down by the subdued equity market sentiment, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 82.90 and slipped further to trade at 82.92 against the greenback, registering a loss of 2 paise from its previous close.

On Monday, the rupee settled 1 paise lower at 82.90 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03% to 103.81.

Brent crude futures, the global oil benchmark, fell 0.17% to $82.66 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 259.97 points or 0.35% lower at 73,612.32 points. The broader NSE Nifty declined 83.95 points or 0.37% to 22,321.65 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹564.06 crore, according to exchange data.

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The rupee declined by 3 paise to settle at 82.92 (provisional) against the U.S. dollar on February 28, tracking bearish equity markets and foreign fund outflow amid increased month-end demand for the American currency.

Forex analysts said that softening crude oil prices provided a cushion to the Indian currency which was weighed down by a stronger dollar.

Also, market participants were cautious ahead of the domestic GDP data to be released on February 29 and the U.S. GDP numbers expected on February 28, they said.

At the interbank foreign exchange market, the local unit opened at 82.90 and touched the intra-day low of 82.95 against the greenback. The local unit finally settled at 82.92 (provisional) against the dollar, registering a loss of 3 paise from its previous close.

On February 27, the rupee settled 1 paisa lower at 82.89 against the U.S. dollar.

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee fell on weak domestic markets and a strong U.S. dollar, however, softening crude oil prices cushioned the downside.

“We expect rupee to trade with a slight negative bias on weak global equities and month-end dollar demand from importers and OMCs (oil marketing companies).

“Traders may take cues from Q4 GDP data (2nd estimates) from the US. Investors may remain cautious ahead of inflation data from the US this week. USD-INR spot price is expected to trade in a range of ₹82.70 to ₹83.10,” Mr. Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.37% higher at 104.21.

Brent crude futures, the global oil benchmark, declined 0.92% to $82.88 per barrel.

On the domestic equity market front, Sensex plunged 790.34 points, or 1.08%, to settle at 72,304.88 points. The Nifty tumbled 247.20 points, or 1.11%, to close at 21,951.15 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on February 27 as they sold shares worth ₹1,509.16 crore on a net basis, according to exchange data.

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The rupee stayed firm for the fourth straight session and gained 4 paise to 82.92 against the U.S. dollar in early trade on Thursday, tracking a weak American currency against major overseas rivals.

Forex trader said, however, the Indian currency was under pressure due to subdued equity market sentiment and elevated level of crude oil prices.

At the interbank foreign exchange, the domestic currency opened at 82.94 and gained further to 82.92 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

The rupee settled 1 paisa higher at 82.96 against the U.S. dollar on Wednesday, after witnessing a cumulative gain of 8 paise in the preceding two sessions.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 103.87.

Analysts attributed the retreating dollar index to the U.S. Federal Reserve’s minutes that reflected policy makers’ cautious approach, ebbing the possibility of interest rate cuts in the immediate future.

Brent crude futures, the global oil benchmark, rose 0.13% to $83.14 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 32.44 points or 0.04% lower at 72,590.65 points. The broader NSE Nifty slipped 3.60 points or 0.02% to 22,051.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth ₹284.66 crore, according to exchange data.

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The rupee appreciated 14 paise to settle at 83.05 (provisional) against the U.S. dollar on September 29, boosted by a firm trend in equity markets and a sharp correction in the greenback against major rivals overseas.

However, selling pressure from foreign equity investors and rising crude oil prices in international markets weighed on the domestic unit, forex traders said.

The rupee opened strong at 83.13 against the U.S. dollar and moved in the range of 83.03 to 83.13 against the greenback. It finally settled at 83.05 (provisional), registering a gain of 14 paise from its previous close.

On Thursday, the rupee settled 3 paise higher at 83.19

.Analysts said the rupee also strengthened due to a significant decline in India’s current account deficit (CAD). However, rising interest rates and U.S. bond yields prompted foreign investors to stay in selling mode.

CAD almost halved to $9.2 billion, or 1.1%, of GDP in the first quarter of the current fiscal from $17.9 billion (2.1% of GDP) a year ago, the Reserve Bank of India said on Thursday

.Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: “Indian rupee strengthened on Friday on weak U.S. dollar index and a decline in crude oil prices. Positive tone in domestic markets also strengthened the rupee. However, FII outflows capped sharp gains.”

The dollar declined on concerns over looming U.S. government shutdown fears. Disappointing economic data from the U.S. also weighed on the greenback, he added.

“We expect the rupee to trade with a slight positive bias on as U.S. government shutdown worries may keep the dollar pressure. Recovery in global markets may also support the local currency.

“However, expectations of recovery in crude oil prices and selling pressure from foreign investors may weigh on the rupee,” Mr. Choudhary said, adding “Traders may also take cues from India’s fiscal deficit data. $/₹ spot price is expected to trade in a range of ₹82.70 to ₹83.40”

.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined by 0.52% to 105.68.

Brent crude, the global oil benchmark, was trading 0.36% higher at $95.72 per barrel.

On the domestic equity front, the 30-share BSE Sensex jumped 320.09 points or 0.49% to settle at 65,828.41. The broader Nifty climbed 114.75 points or 0.59% to end at 19,638.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹3,364.22 crore, according to exchange data.

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The rupee declined by 20 paise to settle at 83.14 (provisional) against the U.S. dollar on September 25 due to rising crude oil prices and a strong American currency against major rivals overseas.

Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said.

At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback.

It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close.

On Friday, the rupee climbed 19 paise to close at 82.94 against the U.S. dollar.

Friday’s gain in the rupee was attributed to JP Morgan’s announcement that it will include Indian government securities in its global bond index starting June 2024, a move which is expected to bring in $25-30 billion of inflows into the Indian debt market.

On the other hand, the dollar strengthened due to an increased month-end demand of the American currency by importers and rising U.S. Treasury yield amid concerns of further interest rate hikes by the U.S. Federal Reserve.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said, “Indian rupee declined on Monday on a strong dollar and weak domestic equities. Selling pressure from FIIs also put downside pressure on the rupee. US.. dollar gained on hawkish FOMC last week”.

He said the rupee is likely to trade with a slight negative bias on strong dollar and risk aversion in global markets.

“FII outflows and elevated crude oil prices may put further downside pressure on the domestic currency. However, any intervention by the RBI may support the rupee at lower levels. $/₹spot price is expected to trade in a range of ₹82.75 to ₹83.60,” Mr. Chaudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.08% to 105.67.

Brent crude futures, the global oil benchmark, advanced 0.45% to $93.69 per barrel.

On the domestic equity market front, the BSE Sensex closed 14.54 points or 0.02% higher at 66,023.69. The broader NSE Nifty settled flat at 19,674.55.

India’s foreign exchange reserves declined by $867 million to $593.037 billion in the week ended September 15, the Reserve Bank said on Friday.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹1,326.74 crore, according to exchange data.

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The rupee continued its upward trend for the second straight session and appreciated by 9 paise to 82.93 against the U.S. dollar in early trade on Septmber 11, tracking positive cues from domestic equity markets and a weak American currency against major overseas rivals.

However, firm crude oil prices hovering above $ 90 per barrel and outflow of foreign funds weighed on the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened 9 paise higher at 82.93 and traded in a narrow range of 82.90 to 82.96 against the greenback.

Also read | Rupee snaps 4-day losing streak, gains 21 paise against U.S. Dollar

On Friday, the rupee closed at 83.02 against the U.S. dollar.

Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said this week the domestic inflation number will be important to watch and could trigger volatility for the currency.

“Today, volatility for major crosses including the rupee could remain low as no major economic data is expected to release. We expect the USDINR (Spot) to trade sideways with a positive bias and quote in the range of 82.80 and 83.40,” Mr. Somaiya added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.35% to 104.72.

Brent crude futures, the global oil benchmark, was trading 0.24% lower at $90.43 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 201.56 points or 0.30 % higher at 66,800.47. The broader NSE Nifty advanced 69.45 points or 0.35% to 19,889.40.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹224.22 crore, according to exchange data.

The rupee fell 2 paise to hit the lowest level of 83.15 against the U.S. dollar in early trade on Thursday amid a strong American currency and elevated crude oil prices.

Forex traders said, massive selling of equities by foreign investors in the past few sessions and subdued market sentiment also put pressure on the Indian currency.

Crude oil breached the level of $90 per barrel after oil producing countries agreed to extend the supply cut till December this year, while dollar strengthened on safe-haven demand.

At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar, 2 paise lower from its previous close. The unit traded in a narrow range of 83.14 to 83.16 against the greenback.

On Wednesday, the rupee declined by 9 paise to close at 83.13 against the dollar. Earlier, the rupee had touched the level of 83.13 on August 21 this year.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.01% to 104.85.

Brent crude futures, the global oil benchmark, was trading 0.21% lower at $90.41 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 156.01 points or 0.24% lower at 65,724.51. The broader NSE Nifty declined 47.10 points or 0.24% to 19,563.95.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹3,245.86 crore, according to exchange data.

The rupee settled at 83.14 (provisional) against the U.S. dollar, down 10 paise from its previous close.
| Photo Credit: REUTERS

The rupee depreciated by 10 paise and settled for the day at an all-time low of 83.14 (provisional) against the U.S. dollar on Wednesday, weighed down by a surge in crude oil prices and strong American currency.

Forex traders said the Indian rupee depreciated on Wednesday as the U.S. dollar rose to the highest levels in six months. Moreover, elevated crude oil prices also weighed on rupee.

At the interbank foreign exchange market, the local unit opened at 83.08 against the U.S. dollar and moved in a range of 83.02 to 83.18 in the day trade.

The rupee finally settled at 83.14 (provisional) against the U.S. dollar, down 10 paise from its previous close.

The India currency earlier hit the lowest level of 83.13 on August 21 this year.

On Tuesday, the rupee plunged by 33 paise to close at 83.04 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.07% to 104.73.

Brent crude futures, the global oil benchmark, declined 0.67% to $89.44 per barrel.

“Brent crude breached the $90/barrel mark. U.S. dollar gained on safe-haven demand amid concerns over global economic slowdown after China’s Caixin Services PMI fell to an 8-month low at 51.8 in August vs forecast of 53.6,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Mr. Choudhary further said that “we expect the rupee to trade with a negative bias on risk aversion in global markets and a strong U.S. dollar.

“FII outflows and rising crude oil prices may further pressurise rupee. However, any intervention by the RBI and expectations of a no rate hike by Fed in its September FOMC may support rupee at lower levels. Traders may take cues from ISM services PMI data from the U.S.” On the domestic equity market front, the 30-share BSE Sensex closed 100.26 points or 0.15% higher at 65,880.52. The broader NSE Nifty advanced 36.15 points or 0.18% to 19,611.05.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth ₹1,725.11 crore, according to exchange data.