Image used for representational purpose only.

This image is used for representational purposes only.
| Photo Credit: Getty Images/iStockphoto

Image used for representation purpose only.
| Photo Credit: The Hindu

India’s forex reserves dropped by $3.709 billion to $701.176 billion for the week ended October 4, the RBI 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.

For the week ended October 4, foreign currency assets, a major component of the reserves, decreased by $3.511 billion to $612.643 billion, the data released on Friday showed.

Expressed in terms of dollar, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves decreased by $40 million to $65.756 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $123 million to $18.425 billion, the apex bank said.

India’s reserve position with the IMF was down by $35 million to $4.352 billion in the reporting week, the apex bank data showed.

At the interbank foreign exchange market, the local unit opened at 83.92, then gained ground to touch 83.88, registering a rise of 9 paise from its previous close. File
| Photo Credit: The Hindu

The rupee appreciated 9 paise to 83.88 against the U.S. dollar in morning trade on Thursday (August 29, 2024), supported by the weakness of the American currency in the overseas market and a positive trend in domestic equities.

Forex traders said the market is awaiting cues from the U.S. Gross Domestic Product (GDP) and the U.S. Personal Consumption Expenditure (PCE) inflation data, as this data point is crucial as it could sway the Federal Reserve’s decision on whether to implement a 25 or 50 basis point rate cut at its September meeting.

At the interbank foreign exchange market, the local unit opened at 83.92, then gained ground to touch 83.88, registering a rise of 9 paise from its previous close.

The rupee depreciated 4 paise on Wednesday (August 28, 2024).
| Photo Credit:
PTI

On Wednesday (August 28, 2024), the rupee depreciated 4 paise to close at 83.97 against the American currency.

“The rupee is in the midst of a tug-of-war between positive and negative factors. With the Reserve Bank firmly in control, the rupee is expected to trade within a narrow range in the near term, with the upside likely capped around 83.80 and strong support near 84.05,” CR Forex Advisors MD Amit Pabari said.

“Most Asian currencies were range-bound as the market awaited the U.S. GDP and PCE data, with IDR at 15412, KRW at 1335 and CNH at 7.1278,” 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 down 0.16% to 100.92 points.

Brent crude, the international benchmark, gained 0.06% to $78.70 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 211.91 points, or 0.26%, to 81,997.47 points, while the Nifty was up 52.85 points, or 0.21%, to 25,105.20 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday (August 28, 2024), as they offloaded shares worth ₹1,347.53 crore, according to exchange data.

The rupee strengthens against the dollar, supported by a positive equities trend
| Photo Credit: The Hindu

The Rupee appreciated 8 paise to 83.89 against the U.S. dollar in early trade on Friday (August 9, 2024), supported by a positive trend in domestic equities and a decline in the U.S. dollar index.

Forex traders said that after the Reserve Bank of India’s monetary policy announcement, markets now await U.S. CPI data, India CPI, WPI and IIP data and India’s trade data, all scheduled to be released next week.

“The Jackson Holes Symposium to be held after next week will also remain in focus,” traders said.

At the interbank foreign exchange, the rupee opened at 83.95 against the greenback, then touched 83.89, registering a rise of 8 paise over its previous closing price.

On Thursday (August 8, 2024), the rupee consolidated in a narrow range and settled for the day lower by 2 paise at 83.97 against the U.S. dollar.

“The rupee was protected by the Reserve Bank of India (RBI) at 83.96 for this week and the local unit is likely to trade in a narrow range of 83.90/84.00 for the day after the RBI kept key benchmark rates on hold,” said Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 103.17.

Brent crude, the global oil benchmark, advanced 0.15% to $79.28 per barrel. “Brent oil prices rose to $79.22, a 3% weekly gain, on rising Middle East tensions and better than expected U.S. jobless claims data, giving a better outlook on the U.S. economy,” Mr. Bhansali added.

Market analysts said while the rupee seems to be tilting towards a negative bias, sharp fluctuations are not anticipated.

Meanwhile, the Monetary Policy Committee (MPC) of the Reserve Bank kept the benchmark repurchase or repo rate unchanged at 6.50%. Announcing the bi-monthly monetary policy review RBI Governor Shaktikanta Das said, “The Indian rupee has remained largely range-bound so far this financial year.”

Mr. Das further noted that the country’s forex reserves touched a record high of $675 billion as of August 2.

On the domestic equity market front, Sensex surged 958.63 points, or 1.22%, to 79,844.85 points. The Nifty advanced 280.70 points, or 1.16%, to 24,397.70 points.

“Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday (August 8, 2024), as they offloaded shares worth ₹2,626.73 crore,” according to exchange data.

On August 1, the Rupee declined five paise to settle at 83.73 against the U.S. dollar.
| Photo Credit: The Hindu

The Rupee turned flat at 83.73 against the U.S. currency on August 2 amid weak equity markets and an upward movement in crude oil prices overseas.

According to forex traders, “the Indian currency found support due to softening the dollar against major rivals following the U.S. Federal Reserve’s decision to maintain the status quo on interest rates and some inflows of foreign capital into Indian equities.”

At the interbank currency exchange, the domestic currency opened at 83.74 and inched up to trade at 83.73 against the dollar, the previous day’s closing level. On August 1, the Rupee declined five paise to settle at 83.73 against the U.S. dollar.

Anand James, Chief Market Strategist of Geojit Financial Services, said the Rupee’s weakness was capped by “a likely intervention from the Reserve Bank of India”.

“The next key U.S. economic release is the July jobs report, expected on August 2,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 104.13. Brent crude — the global oil benchmark — rose by 0.79% to $80.15 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex plunged 614.96 points or 0.75% to 81,252.59 in morning trade, while the broader Nifty declined 194.80 points or 0.78% to 24,816.10.

“Foreign institutional investors were net buyers in the capital markets on August 1 and bought shares worth ₹2,089.28 crore, “ according to exchange data.

A monthly survey released on August 1 showed India’s manufacturing sector growth eased slightly to 58.1 in July from 58.3 in June on softer increases in new orders and output, while cost pressures and demand strength led to the steepest increase in selling prices since October 2013.

“The government’s GST collections in July rose 10.3% to more than ₹1.82 lakh crore, driven by domestic transactions in goods and services,” according to official data released on August 1.

On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar. File
| Photo Credit: The Hindu

The Rupee fell one paisa to close at an all-time low of 83.72 (provisional) against the U.S. dollar on July 25, dragged down by demand for the American currency in the overseas market and significant foreign fund outflows.

Forex traders said the fall in domestic unit came on the heels of a significant downturn in the Indian equity markets, sparked by the government’s decision to hike the tax rate on capital gains.

At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.66 and a low of 83.72 against the dollar during the session.

It finally settled at an all-time low level of 83.72 (provisional) against the American currency, down one paisa from its previous close. On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar.

“The local unit appreciated slightly during the intra-day trade on supposed intervention by the Reserve Bank of India (RBI) and overall weakness in crude oil prices,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

“We expect the Rupee to trade with a slight negative bias on weak global markets and fresh FII outflows. However, weak U.S. dollar and declining crude oil prices may support the Rupee at lower levels. intervention by the Reserve Bank may also support the Rupee,” Mr. Choudhary added.

The government’s decision to hike the tax rate on capital gains dampened market sentiment, exerting immense pressure on the Rupee and the equity market.

In the domestic equity market, the 30-share BSE Sensex fell 109.08 points or 0.14% to settle at 80,039.80 points and Nifty dropped 7.40 points or 0.03% to 24,406.10 points.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.17, lower by 0.21%. Brent crude futures, the global oil benchmark, fell 1.79% to $81.25 per barrel.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹5,130.90 crore, according to exchange data.

On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar.
| Photo Credit: The Hindu

Rupee opened on a muted note and fell to an all-time low of 83.72 against the U.S. dollar on July 25, dragged down by the strength of the American currency in the overseas market and significant foreign fund outflows.

Forex traders said the fall in the domestic unit came on the heels of a significant downturn in the Indian equity markets, sparked by the government’s decision to hike the tax rate on capital gains.

At the interbank foreign exchange market, the local unit was trading in a narrow range. It opened at an all-time low of 83.72 against the American currency, registering a fall of one paisa from its previous close.

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On July 24, the Rupee depreciated two paise to hit its all-time closing low of 83.71 against the U.S. dollar. The government’s decision to hike the tax rate on capital gains dampened market sentiment, exerting immense pressure on the Rupee and the equity market.

“Post-Budget day, the benchmark Indian equity indices, BSE Sensex and Nifty 50, dipped by approximately 0.3% and 0.2%, respectively, as foreign institutional investors withdrew a staggering $350 million from Indian stocks.

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“Adding to the turmoil, persistent high demand for dollars, driven by defence and oil payments, compounded the currency’s woes,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.21, lower by 0.17%. Brent crude futures, the global oil benchmark, fell 0.75% to $81.10 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 425.14 points or 0.53% lower at 79,723.74 points. The broader NSE Nifty was down 120.65 points or 0.49% to 24,292.85 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on July 24 as they offloaded shares worth ₹5,130.90 crore, according to exchange data.

On July 12, the Rupee settled at 83.51 against the U.S. dollar.
| Photo Credit: The Hindu

Rupee depreciated 11 paise and settled for the day at an all-time low of 83.62 (provisional) against the U.S. dollar on July 15, weighed down by the overall strength of the American currency in the overseas market.

Forex traders said a positive trend in domestic equities, wherein benchmark indices touched all-time high levels and significant foreign fund inflows supported the Rupee at lower levels.

At the interbank foreign exchange market, the local unit opened at 83.53, but lost ground and finally settled at an all-time low of 83.62 (provisional) against the dollar, 11 paise lower than its previous close. On July 12, the Rupee settled at 83.51 against the U.S. dollar.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the Rupee declined on positive U.S. dollar and rising domestic inflation.

“U.S. dollar rose on safe haven demand amid political violence in the U.S.,” he said, adding that rising odds of a rate cut by Fed in September may limit a sharp upside in the greenback.

“Traders may take cues from Empire State manufacturing index data from the U.S.. USD-INR spot price is expected to trade in a range of ₹83.30 to ₹83.80,” Mr. Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.02% at 104.07. Brent crude futures, the global oil benchmark, were trading 0.09% higher at $85.11 per barrel.

In the domestic equity market, the benchmark indices scaled all-time high levels. The 30-share BSE Sensex ended the day 145.52 points, or 0.18%, higher at an all-time high of 80,664.86 points. The broader NSE Nifty settled 84.55 points, or 0.35%, higher at a record 24,586.70 points.

According to the official data released on July 15, wholesale inflation in the country rose for the fourth consecutive month in June at 3.36% on account of rise in prices of food articles, especially vegetables and manufactured items.

The government data released on Friday showed retail inflation increased to a four-month high of 5.08% in June as food items, including vegetables became dearer.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹4,021.60 crore, according to exchange data.