At the interbank foreign exchange, the local currency opened at 82.88 and dipped to 82.89 against the greenback, registering a gain of 2 paise from its previous close. Image for representation purposes only. File
| Photo Credit: Reuters

The rupee appreciated 2 paise to 82.89 against the U.S. dollar in early trade on February 29, tracking a weak American currency and a downward trend in the crude oil prices.

The domestic unit, however, weighed down by a volatile equity market and unabated outflow of foreign funds, forex traders said.

Market participants were also awaiting the domestic GDP data to be released later in the day, they said.

At the interbank foreign exchange, the local currency opened at 82.88 and dipped to 82.89 against the greenback, registering a gain of 2 paise from its previous close.

On Wednesday, the rupee settled 2 paise lower at 82.91 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.11% lower at 103.86 on Thursday.

Analysts said the dip in the American currency was an instant reaction to the U.S. macroeconomic data which projected a slightly lower growth rate for the world’s largest economy.

According to Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, market participants remained cautious ahead of the GDP number that will be released on the domestic front.

“Today, market participants will focus on India’s GDP which is expected at 6.6%, and any disappointment could weigh on the rupee. Also focus will be on German CPI, and the Fed’s preferred inflation gauge – the Core PCE price index. We expect USD-INR (Spot) to trade sideways and quote in the range of 82.80-83.20,” he added.

Brent crude futures, the global oil benchmark, declined 0.18% to $83.53 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 68.22 points or 0.09% higher at 72,373.10 points.

The broader NSE Nifty rose 2.80 points or 0.01% to 21,953.95 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth ₹1,879.23 crore on a net basis, according to exchange data.

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and a rising U.S. dollar. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee recovered from its all-time low levels and appreciated by 5 paise to 83.05 against the U.S. dollar in early trade on Monday tracking a positive trend in domestic equities.

Forex traders said the rupee is likely to trade with a negative bias on risk aversion in global markets and a rising U.S. dollar.

At the interbank foreign exchange, the domestic unit opened at 83.10, then touched a high of 83.05 against the American currency, registering a rise of 5 paise over its last close.

On Friday, the rupee edged lower by 1 paisa to settle at an all-time low of 83.10 against the U.S. dollar, weighed down by a negative trend in domestic equities, and foreign fund outflows.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02% to 103.39.

Dollar witnessed its longest winning streak in the last 15 months following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the U.S., said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial services.

Rising uncertainty over economic recovery in China is leading to weakness in the Chinese Yuan and thereby weighing on the rupee, Somaiya added.

Most investors will be taking cues from the BRICS summit and the Jackson Hole Symposium. “We expect the USDINR(Spot) to trade sideways and quote in the range of 82.80 and 83.30,” Somaiya said.

Brent crude futures, the global oil benchmark, rose 0.73% to $85.42 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 117.43 points or 0.18% higher at 65,066.09. The broader NSE Nifty advanced 26.40 points or 0.14% to 19,336.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹266.98 crore, according to exchange data.

Meanwhile, India’s foreign exchange reserves jumped $708 million to $602.161 billion for the week ended August 11, the Reserve Bank of India (RBI) said on Friday.

This is the first increase in the kitty after declining for three consecutive weeks. In the previous week, the overall reserves had declined $2.417 billion to $601.453 billion.