Image used for representational purposes. File
| Photo Credit: Reuters

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback; it rose 1 paisa to 84.07 in initial trade. File
| Photo Credit: The Hindu

The rupee opened on a flat note and rose 1 paisa to 84.07 against the U.S. dollar in initial deals on Thursday (October 31, 2024), as strong dollar and persistent foreign fund outflows dented investor sentiments.

Forex traders said that the rupee remained range-bound as month-end demand kept the U.S. dollar well-bid.

“Moreover, a muted trend in domestic equities weighed on the local unit, while any intervention by the Reserve Bank of India (RBI) may support the local currency at lower levels,” they said.

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback; it rose 1 paisa to 84.07 in initial trade.

On Wednesday (October 30, 2024), the rupee depreciated 3 paise to close at 84.08 against the U.S. dollar.

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

“The rupee has been trading below the 84-level for the majority of October, but the recent pressure is primarily due to domestic factors, notably month-end dollar demand from local oil companies,” CR Forex Advisors MD Amit Pabari said.

However, upcoming IPO inflows may offer the rupee some relief as companies like Swiggy, Acme Solar Holdings, and Sagility Limited prepare to raise funds next week.

“As a result, we anticipate the USD-INR pair to remain within a narrow range of 83.80 to 84.20, with RBI interventions offering critical support to prevent any significant downside,” Mr. Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.14, higher by 0.14%.

Brent crude, the global oil benchmark, was up 0.48% to $72.90 per barrel in futures trade.

On the domestic equity market front, Sensex declined 163.76 points, or 0.20%, to 79,778.42 points. The Nifty fell 32.00 points, or 0.13%, to 24,308.85 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday (October 30, 2024), as they offloaded shares worth ₹4,613.65 crore, according to exchange data.

On the macroeconomic front, the output of eight key infrastructure sectors expanded by 2% in September, though the growth was slower than the 9.5% registered in the same month last year, according to official data released on Wednesday (October 30, 2024).

The Centre’s fiscal deficit at the end of the first half of financial year FY25 touched 29.4% of the full-year target, government data showed on Wednesday (October 30, 2024).

At the interbank foreign exchange, the rupee opened at 84.08 against the greenback. In the initial trade, it touched 84.07, registering a rise of 1 paisa over its previous close. File
| Photo Credit: The Hindu

The rupee witnessed range-bound trade and appreciated by just 1 paisa to 84.07 against the U.S. dollar in initial deals on Monday (October 28, 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 the strong dollar weighs on the local unit, while positive domestic equities, 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 84.08 against the greenback. In the initial trade, it touched 84.07, registering a rise of 1 paisa over its previous close.

On Friday (October 25, 2024), the rupee edged lower by just 1 paisa to settle near an all-time low at 84.08 against the U.S. dollar.

The local currency touched its lowest closing level of 84.10 against the dollar on October 11, 2024.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.28% lower at 104.54.

Brent crude, the global oil benchmark, eased 4.39% to $72.71 per barrel in futures trade.

According to traders, the rupee remains under intense pressure, mainly due to persistent foreign fund outflows.

According to CR Forex Advisors MD Amit Pabari, the rupee continues to hover around the 84 mark, a trend largely driven by the stronger dollar index through most of October.

“Given the lighter data schedule and Diwali festivities, trading volumes are likely to stay subdued this week. However, pressure on the rupee is expected to persist until FII outflows ease, fuelled in part by high valuations in Indian equities,” Mr. Pabari noted.

‘The USD-INR pair is anticipated to trade within a narrow range of 83.80 to 84.20, with downside support from the RBI’s reserves,” he added.

On the domestic equity market front, Sensex advanced 209.10 points, or 0.26%, to 79,611.39 points. The Nifty rose 13.55 points, or 0.06%, to 24,194.35 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Friday (October 25, 2024) Mr. Pabari, as they offloaded shares worth ₹3,036.75 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped by $2.163 billion to $688.267 billion for the week ended October 18, the Reserve Bank said on Friday (October 25, 2024).

In the previous reporting week, the overall kitty had dropped by $10.746 billion to $690.43 billion in one of the largest declines in the reserves in recent times, the RBI said on Friday (October 25, 2024).