At the interbank foreign exchange market, the rupee opened at 95.43 against the U.S. dollar, down 17 paise from its previous close. File
| Photo Credit: Getty Images/istock photo

Photo used for representation purpose only.
| Photo Credit: Reuters

The rupee turned flat at 85.79 against the US dollar in early trade on Monday (January 6, 2025) as positive domestic equity markets failed to boost sentiment amid sustained outflow of foreign capital and elevated level of American currency index.

According to forex traders, the Indian currency found some support due to falling crude oil prices overseas, but concerns over higher dollar index as well as US treasury yields kept investors in cautious mode.

At the interbank foreign exchange, the rupee opened at 85.77 and then slipped further to its previous session’s closing level of 85.79 against the American currency.

On Friday, the rupee depreciated 4 paise to close at 85.79 against the dollar.

On December 27, the local currency touched its lifetime intra-day low of 85.80 against the greenback.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 108.74.

Brent crude, the global oil benchmark, fell 0.18 per cent to USD 76.37 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex was trading 192.52 points or 0.24 per cent higher at 79,415.63 in morning trade, while Nifty was up 61.10 points or 0.25 per cent to 24,065.85.

Foreign institutional investors (FIIs) offloaded Rs 4,227.25 crore in the capital markets on a net basis on Friday, according to exchange data.

The country’s forex reserves dropped by USD 4.112 billion to USD 640.279 billion during the week ended December 27, the Reserve Bank said on Friday.

Image used for representational purpose.
| Photo Credit: Reuters

Rupee opened on a flat note and rose just 4 paise from its all-time low level to 84.71 against the U.S. dollar in morning trade on Thursday (December 5, 2024), as the support from positive domestic equities was negated by the broad strength of the American currency in the overseas market.

Forex traders said rupee is likely to remain under pressure in the near-term amid strong dollar and elevated in crude oil prices.

At the interbank foreign exchange, the rupee opened at 84.72 and moved in a tight range and touched 84.71 against the greenback, registering a gain of just 4 paise over its previous close.

On Wednesday, the rupee slumped by 7 paise to hits its lowest-ever closing level of 84.75 against the U.S. dollar.

“The upcoming RBI monetary policy meeting on December 6 will be pivotal, as a balanced stance on inflation and growth could further enhance sentiment and attract fresh inflows,” CR Forex Advisors’ Amit Pabari said.

The Reserve Bank’s high-level panel on Wednesday started deliberations on the bi-monthly monetary policy amid expectations of status quo on interest rate as the retail inflation is above the upper tolerance level of the Central bank.

The decision taken by the RBI Governor Shaktikanāta Das headed six-member Monetary Policy Committee (MPC) will be announced on Friday (December 6).

Looking ahead, the US Fed’s anticipated pivot towards rate cuts in 2025 could further improve the appeal of emerging markets like India. Moreover, this, combined with stabilizing FII flows, could ease liquidity constraints and enable the RBI to step up its forex market interventions, Mr. Pabari added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.05% at 106.26.

Brent crude, the global oil benchmark, rose by 0.10% to $72.38 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex was trading 49.20 points, or 0.06% higher, to 81,005.53 points. The Nifty rose 47.85 points, or 0.2%, to 24,515.30 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth ₹1,797.60 crore, according to exchange data.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and traded in a tight range. In initial trade it touched 84.05, registering a rise of 5 paisa over its previous close. File
| Photo Credit: Reuters

The rupee rebounded from its all-time low levels and appreciated 5 paise to 84.05 against the U.S. dollar in morning trade on Monday (October 14, 2024), weighed down by elevated crude oil prices and strong dollar as risk-off sentiment gripped the markets.

Forex traders said there have been significant foreign fund outflows and crude oil prices have surged by nearly 10%, fueled by Hurricane Milton’s impact on U.S. production along with the tensions in the Middle East between Israel and Iran.

However, the Reserve Bank of India’s intervention, backed by record-high reserves, has supported the local unit at lower levels.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback and traded in a tight range. In initial trade it touched 84.05, registering a rise of 5 paisa over its previous close.

On Friday (October 11, 2024), the rupee fell 12 paise to a record low of 84.10 against the U.S. dollar.

“Indian equities saw substantial outflows, with FIIs offloading nearly $6.4 billion in October, as risk-off sentiment gripped the markets. Adding to the strain, crude oil prices have surged by nearly 10%,” CR Forex Advisors MD-Amit Pabari said.

Mr. Pabari further added that the Reserve Bank of India’s intervention, backed by record-high reserves and strong resistance at the 84.10 level could trigger a pullback below 84 as FII outflows begin to ease.

“Thus, in the short term, we expect the USD-INR pair to trade in a range of 83.90 to 84.10,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13% higher at 103.02.

Brent crude, the global oil benchmark, declined 1.21% to $78.08 per barrel.

On the domestic equity market front, Sensex advanced 461.97 points, or 0.57%, to 81,843.33 points. The Nifty rose 140.40 points, or 0.56%, to 25,104.65 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday (October 11, 2024) as they offloaded shares worth ₹ 4,162.66 crore, according to exchange data.

Meanwhile, “India’s forex reserves dropped by $ 3.709 billion to $ 701.176 billion for the week ended October 4,” the Reserve Bank of India said on Friday (October 11, 2024).

In the previous reporting week, the reserves had jumped by $ 12.588 billion to an all-time high of $ 704.885 billion.

The rupee fell 11 paise, revisiting its all-time low of 84.09 (provisional) against the US dollar, tracking a weak domestic equity market and continued FII outflows.
| Photo Credit: Reuters

The rupee on Friday (October 11, 2024) fell 11 paise, revisiting its all-time low of 84.09 (provisional) against the US dollar, tracking a weak domestic equity market and continued FII outflows.

The situation in the Middle East continues to be volatile and might keep oil prices high and the rupee weak in the short term, according to forex traders.

At the interbank foreign exchange, the rupee opened at 83.97 against the dollar, 1 paisa higher than previous day’s close. It rose to the day’s high of 83.96 but tumbled to 84.10 before revisiting its all-time low of 84.09 (provisional), 11 paise lower than its previous close.

The domestic unit had closed at 83.98 on Thursday.

“After keeping it in a range below 83.99 since August 8, 2024, the Reserve Bank of India (RBI) finally allowed rupee to weaken past 84 as FPIs who have emerged as big sellers in equities continued to buy dollar to take their money out of the country,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

“We can now expect the rupee to move to 84.25 in the short term. Importers will continue buying at all dips and exporters may now hold their exports with a stop below 83.95. The Iran/Israel/Lebanon news also does not seem good and could keep oil strong and the rupee weak,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.09 per cent to 102.89 points.

Brent crude, the international benchmark, was down 0.57% to $78.95 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex was down 230.05 points to close at 81,381.36, while Nifty declined 34.20 points to settle at 24,964.25.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth ₹4,926.61 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee pared its initial gains and settled on a flat note at 83.99 against the U.S. dollar on Monday (October 7, 2024) on selling pressure from foreign funds and weak tone in the domestic markets.

Forex traders said elevated crude oil prices and escalating tensions between Israel and Iran weighed on the local unit, while all-time high forex reserves boosted investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.96 against the U.S. dollar and touched an intra-day high of 83.95 and a low of 83.99.

The domestic currency finally ended the day at 83.99 (provisional), unchanged from its previous closing level.

“We expect the rupee to trade with a negative bias on selling pressure from foreign funds and weak tone in the domestic markets. Escalating tensions between Israel and Iran may further pressurise the rupee,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

Mr. Choudhary said traders may take cues from comments by U.S. Fed officials.

“Investors may remain cautious ahead of the RBI’s monetary policy meeting outcome on Wednesday,” he said, adding that USDINR spot price is expected to trade in a range of ₹83.80-84.20.

Meanwhile, India’s forex reserves jumped $12.588 billion to a new all-time high of $704.885 billion for the week ended September 27, the Reserve Bank of India (RBI) said on Friday.

On the domestic equity market front, the Sensex fell 638.45 points, or 0.78%, to close at 81,050.00. The Nifty declined 218.85 points, or 0.87% to settle at 24,795.75. Both indices suffered losses in the previous week.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.07% to 102.59.

Brent crude, the international benchmark, advanced 2.09% to $79.68 in futures trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, offloading shares worth ₹9,896.95 crore on a net basis in the cash segment, according to exchange data.

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.

The rupee falls 2 paise to close at 83.97 against U.S. dollar on Tuesday (September 10, 2024).
| Photo Credit:
PTI

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.