The rupee appreciated by 4 paise to 83.06 against the U.S. dollar on May 27, 2024. File
| Photo Credit: Reuters

The rupee appreciated by 4 paise to 83.06 against the U.S. dollar on May 27, tracking a positive trend in domestic equities, wherein benchmark indices scaled new peaks.

Forex traders said the weakness of the American currency in the overseas market supported the rupee, while elevated crude oil prices in the international market restricted the upmove.

At the interbank foreign exchange market, the local unit opened at 83.08 and gained further ground to trade at 83.06 against the greenback, registering a gain of 4 paise from its previous closing level.

On Friday, the rupee rallied for the fourth consecutive trading session and settled with a sharp gain of 19 paise at 83.10 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.70, lower by 0.02%.

Brent crude futures, the global oil benchmark, advanced 0.19% to $82.28 per barrel.

On the domestic macroeconomic front, India’s forex reserves jumped $4.549 billion to a new all-time high of $648.7 billion for the week ended May 17, the Reserve Bank said on Friday.

This is the third consecutive week of increase in the overall kitty, which had increased by $2.561 billion to $644.151 billion in the previous reporting week ended May 17.

“India’s robust economic fundamentals and significant foreign exchange reserves, which reached an all-time high of $648.7 billion as of May 17, provide a solid buffer for the RBI to counter any downward pressure on the rupee,” CR Forex Advisors MD Amit Pabari said.

Additionally, substantial foreign direct investment (FDI) inflows are anticipated. The Adani Group is planning to raise $3.5 billion through a Qualified Institutional Placement (QIP), while Torrent Pharma aims to secure $0.60 billion through convertible bonds or debentures, Mr. Pabari added.

“Given these factors, the rupee is expected to appreciate to around 82.80–82.50 in the near-term, with medium-term projections ranging between 82.20 and 82.00,” Mr. Pabari said.

On the domestic equity market, both the benchmark indices scaled new peaks. The 30-share BSE Sensex was trading 168.04 points, or 0.22% higher at 75,578.43 points. The broader NSE Nifty advanced 47.25 points or 0.21% to 23,004.35 points in initial trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth ₹944.83 crore, according to exchange data.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee consolidated in a narrow range and settled for the day 3 paise lower at 82.78 (provisional) against the U.S. dollar on Tuesday, as market participants remained on the sidelines ahead of the release of key macroeconomic data.

Forex traders said the Indian rupee declined marginally on positive U.S. dollar and recovery in crude oil prices. However, positive domestic markets and sustained foreign fund inflows over the past three sessions supported the local unit at lower levels.

At the interbank foreign exchange market, the local unit opened at 82.74 and touched the intra-day low of 82.78 and a high of 82.72 against the greenback. The local unit finally settled at 82.78 (provisional) against the dollar, registering a loss of 2 paise from its previous close.

On Monday, the rupee declined by 8 paise to settle at 82.75 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 102.85, ahead of inflation data from the U.S.

Brent crude futures, the global oil benchmark, advanced 0.81% to $82.88 per barrel.

“We expect the rupee to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, a positive tone in domestic markets may support the rupee at lower levels.

“Traders may take cues from India’s CPI and IIP data. Market participants may remain cautious ahead of inflation and budget deficit data from the U.S. USD-INR spot price is expected to trade in a range of ₹82.50 to ₹83,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

On the domestic equity market front, Sensex jumped 165.32 points, or 0.22%, to settle at 73,667.96 points. The Nifty rose 3.05 points, or 0.01%, to close at 22,335.70 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday as they bought shares worth ₹4,212.76 crore, according to exchange data.

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on March 12. Image for representation purposes only. File
| Photo Credit: Reuters

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on March 12, as market participants remained on the sidelines ahead of the release of key macroeconomic data.

Forex traders said focus will be on the U.S. Feb CPI print and on the domestic front, Feb CPI print and Jan IIP are due post market hours.

Meanwhile, positive domestic equities, foreign fund inflows and broad weakness of the American currency in the overseas market aided investor sentiments, while rising crude oil prices weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 82.74 against the greenback, then touched 82.72, registering a rise of 3 paise over its previous closing price.

On Monday, the rupee declined by 8 paise to settle at 82.75 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 104.80.

Brent crude futures, the global oil benchmark, advanced 0.36% to $82.51 per barrel.

Forex traders said FDI-related inflows may support the rupee at lower levels. A recovery in domestic equities also supported the rupee. However, market participants are likely to remain cautious ahead of the release of inflation data from India and the U.S.

“Rupee ended at 82.75 on Monday. It is likely to open around 82.75 and trade in an 82.70-82.80 range with sideways price action,” IFA Global Research Academy said in a note.

On the domestic equity market front, Sensex advanced 413.78 points, or 0.56%, to settle at 73,916.42 points. The Nifty rose 94.10 points, or 0.42%, to close at 22,426.75 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Monday as they bought shares worth ₹4,212.76 crore, according to exchange data.

Forex traders said the rupee exhibited strength supported by a weak dollar and easing crude oil prices. Image for representation purposes only. File
| Photo Credit: Reuters

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on March 11, as the support from fresh foreign fund inflows was negated by a negative trend in domestic equities.

Forex traders said the rupee exhibited strength supported by a weak dollar and easing crude oil prices.

At the interbank foreign exchange, the rupee opened at 82.74 against the dollar, but soon pared the losses and touched 82.64 against the greenback in initial trade, higher by 3 paise from its previous close.

On Thursday, the rupee climbed 16 paise to settle at 82.67 against the U.S. dollar.

The forex market was closed on Friday for Mahashivratri.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 102.72, higher by 0.02%.

Brent crude futures, the global oil benchmark, fell 0.67% to $81.53 per barrel.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, rupee is expected to move in a range of 82.68 to 82.88 with a slow appreciation bias as inflows are expected to dominate the sessions.

“As many as seven IPOs are out for grabs in this week while eight firms will list on the bourses in India,” Mr. Bhansali said. Meanwhile, the European Free Trade Association (EFTA) States — Iceland, Liechtenstein, Norway, and Switzerland — has signed a Trade and Economic Partnership Agreement (TEPA) with India. Under the mega trade pact, the four European countries are looking at making an investment of $100 billion in India over the next 15 years.

In the domestic equity market, the 30-share BSE Sensex was trading 114.49 points or 0.15% lower at 74,004.90 points. The broader NSE Nifty was down 21.60 points or 0.1% to 22,471.95 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Thursday as they bought shares worth ₹7,304.11 crore, according to exchange data.

Meanwhile, India’s forex reserves jumped $6.55 billion to $625.626 billion for the week ended March 1, the Reserve Bank of India said on Friday. In the previous reporting week, the overall reserves had risen by $2.975 billion to $619.072 billion.

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 subdued equity market sentiment and strengthening American currency weighed on the domestic unit. 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 26 on the back of foreign funds inflow and retreating crude oil prices in the overseas market.

Forex traders said subdued equity market sentiment and strengthening American currency weighed on the domestic unit.

Also, they said investors adopted cautious approach ahead of inflation and other macroeconomic data to be released in India as well as in the U.S. later this week.

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

On Friday, the rupee settled 6 paise lower at 82.91 against the U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.06% higher at 103.92.

Brent crude futures, the global oil benchmark, was trading 0.45% lower at $82.25 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 219.37 points or 0.30% lower at 72,923.43 points. The broader NSE Nifty declined 51.10 points or 0.23% to 22,161.60 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased worth ₹1,276.09 crore, according to exchange data.

India’s forex reserves declined $5.24 billion to $617.23 billion for the week ending February 9, according to weekly data released by the Reserve Bank of India (RBI) on Friday.

FIIs were net sellers in the capital market on September 7 as they offloaded shares worth ₹3,245.86 crore, according to exchange data. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee depreciated for the fourth straight day and settled nine9 paise lower at its lifetime low of 83.22 (provisional) against the U.S. dollar on September 7 amid a firm American currency and elevated crude oil prices.

Positive trend in the domestic equity markets, however, provided a cushion to the rupee, according to forex traders.

Crude oil breached the $90 per barrel-mark after oil-producing countries agreed to extend supply cut till December this year while dollar stayed firm on safe-haven demand.

At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar and traded in the range of 83.12 to 83.22 against the greenback. It ended at the lowest level of 83.22 (provisional) against the dollar, registering a fall of nine paise from its previous close.

On Wednesday, the rupee settled nine9 paise lower at 83.13 against the dollar. Earlier, the Indian currency had closed at the same level of 83.13 on August 21.

The domestic unit has declined 60 paise since Monday when it had closed nine9 paise lower at 82.71 against the greenback. On Tuesday, the unit had plunged 33 paise, the sharpest fall this week.

“We expect rupee to trade with a negative bias on strong dollar and elevated crude oil prices. Disappointing European data may further support dollar. Rising U.S. treasury yields and concerns over global economic growth may also weigh on rupee,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.09% to 104.95.

Brent crude futures, the global oil benchmark, was trading 0.39% lower at $90.25 per barrel.

On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58% higher at 66,265.56 points while the broader Nifty jumped 116 points or 0.59% to end at 19,727.05 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹3,245.86 crore, 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.