Image for representative purposes only
| Photo Credit: Reuters

The rupee depreciated 16 paise to close at 86.56 (provisional) against the U.S. dollar on Thursday (January 16, 2025), dragged down by a strong American currency overseas, elevated crude oil prices and foreign fund outflows.

“However, positive domestic equity markets provided some cushion at the lower level,” forex traders said.

At the interbank foreign exchange, the rupee opened at 86.42 and touched the intraday high of 86.37 before ending the session at 86.56 (provisional) against the greenback, 16 paise lower from the previous close.

The local unit settled with a gain of 13 paise at 86.40 against the dollar on Wednesday (January 15, 2025), a day after rebounding 17 paise from its lowest-ever level.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee declined due to increased demand for dollars by importers.

“Importers may continue to buy dollars, which may further pressurise the rupee. Traders may take cues from retail sales and weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of ₹86.35 to ₹86.75,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% higher at 108.97.

Brent crude, the global oil benchmark, fell 0.12% but stayed elevated at ₹81.93 per barrel in futures trade.

Analysts said concerns over geopolitical uncertainties will likely add volatility in the dollar and crude until the U.S. gets a new administration under President Donald Trump next week.

In the domestic equity market, the 30-share BSE Sensex climbed 318.74 points, or 0.42%, to settle at 77,042.82 points, while the Nifty rose 98.60 points, or 0.42%, to 23,311.80 points.

Foreign institutional investors (FIIs) offloaded equities worth ₹4,533.49 crore on Wednesday (January 15, 2025).

Image for representational purposes only
| Photo Credit: Reuters

The rupee depreciated by 4 paise to settle at an all-time low of 84.87 (provisional) against the U.S. dollar on Thursday (December 12, 2024), dragged down by negative domestic equity markets, outflow of foreign funds and rise in crude oil prices.

Forex traders said investors were awaiting cues from domestic inflation data to be released later in the day even as an elevated dollar index weighed on the Indian currency.

At the interbank foreign exchange, the rupee opened at 84.85 and touched the lowest-ever level of 84.88 against the greenback during intra-day trade. The unit finally ended the session 4 paise down at a fresh all-time low closing level of 84.87 (provisional) against the dollar.

On Wednesday (December 11, 2024), the rupee settled with a gain of 2 paise at 84.83 against the U.S. dollar.

Rupee’s previous record low closing level was recorded on December 9, when it settled 20 paise lower at 84.86 against the dollar.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee touched a fresh all-time low on strong U.S. dollar and weak domestic markets.

He further said the U.S. dollar gained on rising inflation in the US. However, it was in line with estimates.

“Surge in global crude oil prices may further pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from PPI (producer price index) and weekly unemployment claims data from the U.S. USD-INR spot price is expected to trade in a range of 84.65 to 85.10,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.16% at 106.22.

Brent crude, the global oil benchmark, rose 0.35% to $73.78 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex closed lower by 236.18 points or 0.29% at 81,289.96 points. The Nifty was down 93.10 points, or 0.38%, to 24,548.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday (December 11, 2024), as they offloaded shares worth ₹1,012.24 crore, according to exchange data.

Image for representative purposes only
| Photo Credit: The Hindu

The rupee settled for the day on a flat note higher by just 1 paisa at 84.85 (provisional) against the U.S. dollar on Tuesday (December 10, 2024), a tad above its all-time low level, as change of guard at the Reserve Bank of India raised expectations of a shift in the central bank’s monetary policy.

The government on Monday (December 9, 2024) appointed Revenue Secretary Sanjay Malhotra as the 26th Governor of the Reserve Bank of India.

Forex traders said markets now expect a rate cut in the upcoming monetary policy in February. Meanwhile, a weak tone in the domestic markets and a surge in the U.S. dollar index further pressurised the rupee.

At the interbank foreign exchange, the rupee opened at 84.80 and touched the lowest level of 84.86 against the greenback during intra-day trade. The unit ended the session at 84.85 (provisional) against the dollar, higher by just 1 paisa from its previous close.

On Monday (December 9, 2024), the rupee saw its steepest fall in over a month and plunged 20 paise to settle at the lowest-ever level of 84.86 against the U.S. dollar.

“We expect the rupee to trade with a negative bias on strength in the U.S. dollar and overnight gains in crude oil prices. However, recent FII inflows may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Mr. Choudhary further said that any intervention by the RBI may also support the rupee.

“Investors may remain cautious ahead of U.S. inflation data on Wednesday (December 11, 2024). Inflation is expected to be higher than the previous month. USD-INR spot price is expected to trade in a range of 84.65 to 85.10,” he said.

Shaktikanta Das, who will demit office as the Governor of the Reserve Bank of India on Tuesday (December 10, 2024), was the key man behind the planning and execution of the demonetisation drive and roll-out of the landmark goods and services tax (GST). At the RBI, he steered India’s monetary policy response during the challenging period of the pandemic.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.13% at 106.28.

Brent crude, the global oil benchmark, fell 0.36% to $71.88 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex closed on a flat note at 81,510.05, higher by just 1.59 points. The Nifty fell 8.95 points, or 0.04%, to 24,610.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday (December 9, 2024), as they purchased shares worth ₹724.27 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee turned flat at 84.42 against the U.S. dollar in early trade on Thursday (November 21, 2024) amid volatile crude oil prices and lackluster sentiment in the domestic equity markets.

A weaker American currency supported the local unit, but it was weighed down by the relentless outflow of foreign funds, forex traders said.

Also read | Adani stocks crash on U.S. action on alleged bribery and fraud

At the interbank foreign exchange, the rupee opened at 84.41 and slipped further to 84.42 against the greenback, trading at its previous closing level in early deals.

On Tuesday, the rupee settled flat at 84.42 against the U.S. dollar. The foreign exchange market was closed on Wednesday due to Assembly elections in Maharashtra.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.11% at 106.49.

Brent crude, the global oil benchmark, rose by 0.22% to $72.97 per barrel in futures trade.

On the domestic equity market front, Sensex was trading 398.45points, or 0.51% lower, at 77,179.93 points. The Nifty fell 136.10 points, or 0.58%, to 23,382.40 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹3,411.73 crore, according to exchange data.

The rupee recovered from its lowest level of 84.46 to settle 4 paise higher at 84.42 against the U.S. dollar
| Photo Credit: Getty Images/iStockphoto

The rupee traded in an almost flat note and settled 1 paisa lower at 84.43 (provisional) against the U.S. dollar on Tuesday (November 19, 2024), as support from positive domestic equity markets and lower crude oil prices was negated by the strength of the American currency in the overseas market.

Forex traders said the Ukraine-Russia war took a new turn with Russia updating its nuclear doctrine and Ukraine aimed American missiles at Russia. Safe haven assets like Gold, JPY, CHF and to some extent dollar were bought and the rupee felt the heat and was sold at the closing hours.

At the interbank foreign exchange, the rupee opened at 84.39 and stayed range-bound throughout the session. It finally settled at 84.43 (provisional) against the greenback, down 1 paisa from its previous close.

On Monday (November 18, 2024), the rupee recovered from its lowest level of 84.46 to settle 4 paise higher at 84.42 against the U.S. dollar.

Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said the USD-INR pair is likely to trade in this range in the near term until the U.S. yields break higher decisively. The 10-year U.S. yields face a crucial resistance at 4.50%.

“Traders will closely monitor the assembly elections in Maharashtra and Jharkhand. In addition, India’s PMIs data slated to be released on Friday (November 15, 2024) will also be on traders’ radar,” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.15% at 106.35.

Brent crude, the global oil benchmark, declined by 0.42% to $72.99 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex rose 239.37 points, or 0.31%, to close at 77,578.38 points, while Nifty climbed 64.70 points, or 0.28%, to settle at 23,518.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday (November 18, 2024), as they offloaded shares worth ₹1,403.40 crore, according to exchange data.

Image for representative purposes only
| Photo Credit: Reuters

The rupee recovered from its all-time low level and settled with a gain of 6 paise at 84.40 (provisional) against the U.S. dollar on Monday (November 18, 2024), backed by a retreating American currency.

Forex traders said, the recovery in the local unit was capped by the unabated withdrawal of foreign funds amid lacklustre sentiment in the domestic equity markets as well as an upward movement in crude oil prices.

At the interbank foreign exchange, the rupee opened at 84.42 and touched the intra-day high of 84.37 against the greenback during the session. It finally settled at 84.40 (provisional) against the dollar, up 6 paise from its previous close.

On Thursday (November 14, 2024), the rupee fell 7 paise to settle at its all-time low of 84.46 against the U.S. dollar.

The Forex market was closed on Friday on account of Guru Nanak Jayanti.

“This minor support for the rupee was further aided by a reduction in FII selling activity in recent days, with expectations that sell-off pressure will remain limited due to the upcoming state elections in Maharashtra.”

“The rupee is expected to find support in the 84.45-84.52 range, while resistance is projected around 84.25-84.30,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.06% at 106.55.

Brent crude, the global oil benchmark, rose by 0.79% to $71.60 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 241.30 points, or 0.31%, to close at 77,339.01 points, while Nifty fell 78.90 points, or 0.34%, to settle at 23,453.80 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday (November 14, 2024), as they offloaded shares worth ₹1,849.87 crore, according to exchange data.

On the domestic macroeconomic front, India’s merchandise exports in October rose by an impressive 17.25% year-on-year, the highest in over two years, to $39.2 billion, while the trade deficit widened to $27.14 billion on a sequential basis, according to the latest government data released on Thursday (November 14, 2024).

Meanwhile, the country’s forex reserves dropped by $6.477 billion to $675.653 billion for the week ended November 8, the Reserve Bank of India said on Friday (November 15, 2024).

Image for representative purposes only
| Photo Credit: Reuters

The rupee declined 6 paise to close at a fresh lifetime low of 84.37 (provisional) against the U.S. dollar on Thursday (November 7, 2024), as weak domestic equities and sustained foreign fund outflows dented market sentiment.

Forex traders said investors were also cautious ahead of the U.S. Fed meeting outcome. Moreover, overnight gains in crude oil prices also weighed on the local unit.

“However, a correction in the dollar index against major currencies helped the rupee and restrained the slide,” they added.

At the interbank foreign exchange, the rupee opened at 84.26 against the U.S. dollar. During the session, the local currency touched a high of 84.26 and a low of 84.38. It finally settled at 84.37 (provisional), a loss of 6 paise against its previous close.

On Wednesday (November 6, 2024), the rupee depreciated 22 paise to close at an all-time low of 84.31 against the U.S. dollar.

The rupee touched fresh record lows again on the back of weak domestic equities and sustained FII outflows. Overnight gains in crude oil prices also weighed on the rupee. However, the softening of the U.S. Dollar index from Wednesday’s (November 6, 2024) highs cushioned the downside, forex traders said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.22% lower at 104.86.

Brent crude, the global oil benchmark, fell 0.32% to $74.68 per barrel in futures trade.

“We expect the rupee to trade with a negative bias on overall strength in the US Dollar on the back of Donald Trump’s victory in the US Presidential elections and FII outflows. However, softening of commodity prices amid easing geopolitical risk premium may support the rupee at lower levels,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Any intervention by the RBI may also support the rupee at lower levels. Traders may take cues from weekly unemployment claims data from the US and FOMC meeting decisions. The Bank of England’s monetary policy decision is also due.

BoE and FOMC are expected to cut interest rates by 25 bps. USD/INR spot price is expected to trade in a range of 84.15 to 84.60, Choudhary said.

In the domestic equity market, the 30-share BSE Sensex fell 836.34 points, or 1.04%, to close at 79,541.79 points, while Nifty declined 284.70 points, or 1.16%, to settle at 24,199.35 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday (November 6, 2024), as they offloaded shares worth ₹4,445.59 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

Rupee depreciated 4 paise to close at 84.09 (provisional) against U.S. dollar on Wednesday (October 30, 2024), weighed down by weak domestic markets and month-end dollar demand from importers.

Forex traders said suspected intervention by the Reserve Bank of India (RBI) supported the local currency at lower levels.

At the interbank foreign exchange, the rupee opened at 84.06 against the greenback. It traded in a tight range and ended the day at 84.09 (provisional), down 4 paise from its previous close.

On Tuesday, the rupee gained 2 paise to settle at 84.05 against the U.S. dollar.

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

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15% lower at 104.16. Forex traders said the dollar declined on disappointing jobs data from the U.S.

Brent crude, the global oil benchmark, rose 0.53% to $71.50 per barrel in futures trade.

“We expect the rupee to trade with a mixed to negative bias on weak domestic markets and sustained FII outflows. Month-end dollar demand from importers may further weigh on the rupee.

“However, softening of U.S. dollar amid disappointing jobs markets may support the rupee at lower levels. Traders may watch out for Q3 2024 GDP data and non-farm payrolls report from the U.S. this week,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

On the domestic equity market front, Sensex declined 426.85 points, or 0.53%, to 79,942.18 points. The Nifty fell 126.00 points, or 0.51%, to 24,340.85 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹548.69 crore, according to exchange data.

The rupee witnessed range-bound trade and depreciated 3 paise to 84.07 against the U.S. dollar in initial deals. FIle
| Photo Credit: Reuters

The rupee witnessed range-bound trade and depreciated 3 paise to 84.07 against the U.S. dollar in initial deals on Wednesday (October 16, 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 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 lower levels.

At the interbank foreign exchange, the rupee opened at 84.03 against the greenback. In the initial trade, it touched 84.07, registering a fall of 3 paise over its previous close.

On Tuesday (October 15, 2024), the rupee witnessed a range-bound trade and appreciated 1 paisa to 84.04 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 103.19.

According to traders, the rupee remains under intense pressure, mainly due to Foreign Institutional Investors (FIIs) offloading approximately $8 billion in October.

“The sell-off stems from profit-booking by FIIs, as Indian equities, after months of inflows totalling $25 billion, are now seen as overvalued. Adding to the pressure is the strengthening dollar index, which has surged to a two-month high of 103.25,” CR Forex Advisors MD Amit Pabari said.

Mr. Pabari further noted that despite these headwinds, the rupee’s downside seems limited, with the RBI ready to intervene if necessary.

“Globally, oil prices have dropped by 5% due to weaker demand forecasts and reports that Israel is unlikely to target Iranian oil assets, easing supply concerns,” he said.

Brent crude, the global oil benchmark, rose marginally by 0.26% cent to $74.44 per barrel in futures trade.

On the domestic equity market front, Sensex advanced 40.90 points, or 0.05%, to 81,861.02 points. The Nifty rose 11.45 points, or 0.05%, to 25,068.80 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday (October 15, 2024), as they offloaded shares worth ₹1,748.71 crore, according to exchange data.

Reports of selling of dollars by state-run banks also supported the rupee.  File
| Photo Credit: REUTERS

The rupee appreciated 13 paise to settle at 83.42 (provisional) against the U.S. dollar on Tuesday, buoyed by fresh inflow of foreign capital and a firm trend in domestic equity markets, wherein benchmark indices scaled new peaks.

Forex traders said reports of dollar selling by public sector banks supported the Indian currency. However, higher crude oil prices capped the gains in the local unit.

At the interbank foreign exchange market, the local unit opened at 83.52 and hit the intraday high of 83.39 against the greenback during the session.

It finally settled at 83.42 (provisional) against the dollar, registering a gain of 13 paise from its previous close.

On Friday, the rupee had settled 1 paisa lower at 83.55 against the U.S. dollar.

Forex markets were closed on Monday on account of Bakri Id.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee gained as domestic markets hit new all-time highs and amid fresh foreign fund inflows.

“Reports of selling of dollars by state-run banks also supported the rupee. However, a positive tone in the U.S. dollar and surge in crude oil prices capped sharp gains,” he said, adding, “USD-INR spot price is expected to trade in a range of ₹83.10 to ₹83.70.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.06, higher by 0.12%.

According to analysts, the U.S. dollar gained after hawkish comments by officials of the U.S. Federal Reserve, while market participants were awaiting further cues from retail sales and industrial production data from the U.S.

Brent crude futures, the global oil benchmark, declined 0.33% to $83.97 per barrel.

In the domestic equity market, the 30-share BSE Sensex rose 308.37 points, or 0.40%, to close at a new peak of 77,301.14 points. The broader NSE Nifty settled 92.30 points, or 0.39%, higher to close at an all-time high of 23,557.90 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹2,175.86 crore, according to exchange data.

Analysts attributed the strong investor sentiment to the firm domestic macroeconomic outlook.

Fitch Ratings on Tuesday raised India’s growth forecast for current fiscal to 7.2%, from 7% projected in March, citing a recovery in consumer spending and increased investment.

Meanwhile, India’s forex reserves jumped $4.307 billion to a new all-time high of $655.817 billion for the week ended June 7, the Reserve Bank of India (RBI) on Friday.

The kitty had jumped $4.837 billion to $651.51 billion in the previous reporting week.