Image used for representational purposes. File
| Photo Credit: RAGHUNATHAN SR

The rupee declined sharply by 15 paise to close at 84.44 (provisional) against the U.S. dollar on Wednesday (November 27, 2024) amid uncertainties surrounding U.S. President-elect Donald Trump’s trade policies and an increase in crude oil prices.

However, a strong show at the domestic equity markets, FII inflows along with a weakening dollar against major currencies supported the local unit at lower level, according to forex traders.

At the interbank currency exchange, the rupee opened at 84.38, lower by 9 paise from its previous close, but declined to an intra-day low of 84.48 during the session. It settled at 84.44 (provisional), 15 paise lower than Tuesday’s (November 26, 2024) close of 84.29.

According to analysts, U.S. President-elect Donald Trump’s indication of adopting aggressive trade policies added to the volatility in the currency.

“Rupee lost all its sheen it had gained on Wednesday (November 27, 2024) and fell to 84.48 before recovering as RBI sold dollars… but dollars were bought again on account of month-end demand and it (rupee) closed lower,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“It is expected to be in the range of 84.30 to 84.55 on Thursday (November 28, 2024),” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.46% at 106.51.

Brent crude, the global oil benchmark, rose 0.55% to $73.21 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex climbed 230.02 points to settle at 80,234.08, while Nifty also rose 80.40 points to end the day at 24,274.90.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday (November 26, 2024), purchasing shares worth ₹1,157.70 crore, according to exchange data.

Representational image. File

The rupee fell 3 paise to close at 84.32 (provisional) against the U.S. dollar on Tuesday (November 26, 2024), as the greenback strengthened on Donald Trump’s tariff plans and a muted trend in domestic equities.

Forex traders said U.S. President elect Donald Trump’s comments that he would impose additional 10% tariffs on Chinese goods and impose a 25% levy on imports from Mexico and Canada has affected risk sentiment.

Traders are also awaiting the Federal Open Market Committee (FOMC) minutes of the November 7 meeting for further cues.

At the interbank foreign exchange, the rupee opened at 84.27 and touched an intra-day high of 84.22 and low of 84.35 against the greenback. The unit ended the session at 84.32 (provisional) against the dollar, registering a fall of 3 paise over its previous close.

On Monday (November 25, 2024), the rupee appreciated 12 paise to close at 84.29 against U.S. dollar.

“Traders look forward to the FOMC minutes of the November 7 meeting to be released later tonight. The USD-INR pair may continue to trade in the 84-84.50 in the short term. Interim support is at 84.11,” said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.06% at 106.87.

Brent crude, the global oil benchmark, rose 0.79% to $73.59 per barrel in futures trade.

The overall strength of the American currency and elevated crude oil prices are likely to strain India’s trade balance, creating challenges for the rupee, forex traders said.

In the domestic equity market, the 30-share BSE Sensex fell 105.79 points, or 0.13%, to close at 80,004.06 points, while Nifty fell 27.40 points, or 0.11%, to settle at 24,194.50 points.

Foreign Institutional Investors (FIIs) turned net buyers in the capital markets on Monday (November 25, 2024), purchasing shares worth ₹9,947.55 crore, according to exchange data.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher. File
| Photo Credit: RAGHUNATHAN S.R.

The rupee recovered from its all-time low level and appreciated 6 paise to close at 84.44 (provisional) against the U.S. dollar on Friday (November 22, 2024), supported by positive domestic equities.

Forex traders said the rupee is trading in a narrow range as the U.S. dollar strengthened in the overseas market and Brent oil continued to move up as fighting between Ukraine and Russia continued to gain investors’ attention.

Moreover, foreign institutional investors have continued their equities selling mode and kept the dollar well bid.

At the interbank foreign exchange, the rupee opened at 84.48 and touched an intraday low of 84.50 against the greenback. The unit ended the session at 84.44 (provisional) against the dollar, registering a rise of 6 paise over its previous close.

On Thursday (November 21, 2024), the rupee depreciated 8 paise to settle at an all-time low of 84.50 against the U.S. dollar.

“Geopolitical tensions, portfolio outflows, and rallying U.S. Dollar Index are likely to keep the domestic currency under pressure, though the RBI’s intervention is leading to a gradual and orderly decline,” Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas said.

“The USD/INR pair is expected to rise to ₹85 eventually and support is at ₹84.25,” Mr. Singh said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.50% at 107.50.

Brent crude, the global oil benchmark, surged 0.31% to $74.46 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex jumped 1,961.32 points, or 2.54%, to close at 79,117.11 points, while Nifty surged 557.35 points, or 2.39%, to settle at 23,907.25 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday (November 21, 2024), as they offloaded shares worth ₹5,320.68 crore, according to exchange data.

A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad.
| Photo Credit: REUTERS

The rupee appreciated 10 paise to close at 83.87 (provisional) against the American currency on Thursday (August 29, 2024), supported by easing crude oil prices and a firm trend in domestic equities.

Forex traders said the market is awaiting cues from the U.S. GDP and the U.S. Personal Consumption Expenditure (PCE) inflation data, as this data point is crucial since 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 and touched an intra-day high of 83.84 against the U.S. dollar.

The domestic currency finally settled at 83.87 (provisional), 10 paise higher from its previous close.

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

According to Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, the rupee gained 10 paise, as expectations of interest rate cuts continue to provide support, preventing the rupee from falling below 84.00.

“The strong demand around 84.00 keeps the rupee buoyant, with resistance seen at 83.75. The rupee is expected to trade in a positive range between 84.00-83.70,” Mr. Trivedi said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11% higher at 101.20.

Brent crude, the global oil benchmark, declined 0.34% to $78.38 per barrel.

On the domestic equity market front, Sensex rose 349.05 points, or 0.43%, to close at 82,134.61 points. The Nifty closed 99.60 points, or 0.4%, up at 25,151.95 points.

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