The rupee appreciated 5 paise to 83.45 against the US dollar in early trade on Friday, July 5, 2024, as the American currency retreated from its elevated levels and was supported by significant foreign fund inflows.

At the interbank foreign exchange market, the local unit opened at 83.48 and gained further to 83.45 against the greenback, registering a rise of 5 paise from its previous close.

On Thursday, the rupee pared its initial losses and settled for the day on an almost flat note at 83.50 against the US dollar.

Forex traders said rising crude oil prices weighed on investor sentiments and restricted the upside. Brent crude futures, the global oil benchmark, declined 0.37 per cent to USD 87.11 per barrel.

“The pressure stems from oil marketing companies purchasing crude in anticipation of further price hikes, with Brent oil hovering around USD 87 per barrel. Additionally, it appears the Reserve Bank of India (RBI) is managing the rupee’s volatility, capping both its upward and downward movements,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105, lower by 0.12 per cent.

“The Dollar Index fell towards 105 levels and US 10-year bond yields dropped towards 4.35 per cent, as a series of economic data showed a cooling US economy, thereby heightening the expectations that the US Fed will cut rates sometime soon,” Pabari added.

On the domestic equity market front, the 30-share BSE Sensex fell 386.58 points, or 0.48 per cent, to 79,663.09 points. The broader NSE Nifty declined 84.85 points, or 0.35 per cent, to 24,217.30 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday, as they purchased shares worth ₹2,575.85 crore, according to exchange data.

The rupee witnessed a rebound in early trade on Thursday, April 4, 2024 and appreciated 11 paise to 83.42 against the US dollar, supported by positive domestic equities.

Elevated crude oil prices and sustained foreign fund outflows also dented investor sentiments, forex traders said.

Moreover, market participants remained cautious ahead of the Reserve Bank’s rate-setting panel’s decision to be announced on Friday, traders said, At the interbank foreign exchange market, the local unit opened at 83.44 against the greenback. The unit hit an intraday low of 83.45 and a high of 83.42 against the greenback, higher 11 paise from its previous close.

On Wednesday, the rupee depreciated 11 paise to close at 83.53 against the US dollar.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, market participants await the RBI MPC policy decision for further cues.

The Reserve Bank’s rate-setting panel on Wednesday started its three-day deliberations on the next set of monetary policy.

The decision taken at the meeting of the Reserve Bank Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) will be announced on Friday (April 5).

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05 per cent lower at 104.19.

The rupee appreciated 2 paise to 83.03 against the US dollar in early trade on Wednesday, February 7, 2024, supported by positive domestic equities.

Moreover, the weakness of the American currency in the overseas market also aided sentiments.

At the interbank foreign exchange, the rupee opened at 83.03 against the dollar, registering a gain of 2 paise over its previous close.

On Tuesday, the rupee declined marginally by 2 paise to close at 83.05 against the US dollar.

Forex traders said the rupee is trading in a narrow range as factors such as capital inflows and stable domestic economic data supported sentiments, while hawkish FED, strong US data and global tensions weighed on the local unit.

Moreover, investors were cautious as the Reserve Bank’s monetary policy committee (MPC), the six-member rate-setting panel, began the deliberation on Tuesday. The central bank will announce the key interest rate decision on Thursday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11 per cent lower at 104.09.

Brent crude futures, the global oil benchmark, rose 0.17 per cent to USD 78.72 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 336.54 points or 0.47 per cent higher at 72,522.63 points. The broader NSE Nifty advanced 116.05 points or 0.53 per cent to 22,045.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹92.52 crore, according to exchange data.