Image used for representational purpose.
| Photo Credit: Reuters

The rupee stayed firm for the fourth straight session and gained 4 paise to 82.92 against the U.S. dollar in early trade on Thursday, tracking a weak American currency against major overseas rivals.

Forex trader said, however, the Indian currency was under pressure due to subdued equity market sentiment and elevated level of crude oil prices.

At the interbank foreign exchange, the domestic currency opened at 82.94 and gained further to 82.92 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

The rupee settled 1 paisa higher at 82.96 against the U.S. dollar on Wednesday, after witnessing a cumulative gain of 8 paise in the preceding two sessions.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 103.87.

Analysts attributed the retreating dollar index to the U.S. Federal Reserve’s minutes that reflected policy makers’ cautious approach, ebbing the possibility of interest rate cuts in the immediate future.

Brent crude futures, the global oil benchmark, rose 0.13% to $83.14 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 32.44 points or 0.04% lower at 72,590.65 points. The broader NSE Nifty slipped 3.60 points or 0.02% to 22,051.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth ₹284.66 crore, according to exchange data.

Image used for representative purpose only

The rupee rose 4 paise to 83.01 against the US dollar in early trade on Friday, tracking positive cues from domestic equity markets.

Forex traders said a strong American currency and elevated crude oil prices, however, weighed on the local unit.

At the interbank foreign exchange, the domestic currency opened at 83.03 and inched up to 83.01 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

On Thursday, the rupee settled 3 paise lower at 83.05 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.12% up at 104.32.

Brent crude futures, the global oil benchmark, were trading 0.07% lower at USD 82.80 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 302.55 points or 0.42% higher at 72,352.93 points. The broader NSE Nifty advanced 95.90 points or 0.44% to 22,006.65 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they sold shares worth ₹3,064.15 crore, according to exchange data.

Government data released on Thursday showed the country’s exports increased 3.12% on-year to USD 36.92 billion in January. Imports rose by about 3% to USD 54.41 billion and the trade deficit stood at USD 17.49 billion.

The rupee consolidated in a narrow range and depreciated by 2 paise to close at 83.04 (provisional) against the U.S. dollar on Thursday, tracking a strong American currency and elevated crude oil prices in the international market.

Forex traders said the Indian currency depreciated as foreign fund outflows weighed on the rupee. However, positive domestic markets cushioned the downside.

At the interbank foreign exchange market, the local unit opened at 83.00 and finally settled at 83.04 (provisional) against the dollar, down by 2 paise from its previous close.

During the day, the rupee witnessed a range-bound movement. It saw an intra-day high of 82.99 and a low of 83.04 against the American currency.

On Wednesday, the rupee appreciated 6 paise to close at 83.02 against the U.S. dollar.

“We expect the rupee to trade with a slight positive bias on rise in risk appetite in global markets and a negative tone in the U.S. dollar. Overnight decline in global crude oil prices and better than expected trade balance may further support rupee,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

However, concerns over FII outflows may cap sharp upside.

“Any recovery in the U.S. dollar may also weigh on the rupee at higher levels. Traders may take cues from retail sales, industrial production, Empire State Manufacturing Index and weekly unemployment claims data from the U.S. USD-INR spot price is expected to trade in a range of ₹82.80 to ₹83.20,” Mr. Choudhary added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.10% down at 104.61.

Brent crude futures, the global oil benchmark, was trading 0.40% lower to $81.27 per barrel.

On the domestic equity market front, Sensex advanced 227.55 points, or 0.32%, to settle at 72,050.38 points. The Nifty fell 70.70 points, or 0.32%, to 21,910.75 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹3,929.60 crore, according to exchange data.

On the domestic macroeconomic front, the country’s exports increased 3.12% on-year to $36.92 billion in January, according to the data released by the government on Thursday.

Imports rose by about 3% year-on-year to $54.41 billion in January this year and trade deficit stood at $17.49 billion.

Representational image
| Photo Credit: PTI

The rupee depreciated 15 paise to 82.77 against the U.S. dollar in early trade on Monday as firm crude oil prices weighed on investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 82.71, then touched 82.77, registering a decline of 15 paise over its last close.

On Friday, the rupee had settled at 82.62 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.06% to 104.17.

“This week, services PMI and factory orders number from the US will be important to watch. Better-than-expected data could lift the dollar further higher,” said Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services.

Somaiya further said, “We expect the USDINR (Spot) to trade sideways with a negative bias and quote in the range of 82.30 and 82.80.”

Brent crude futures, the global oil benchmark, rose 0.01% to $88.56 per barrel on tighter supply outlook.

In the domestic equity market, the 30-share BSE Sensex was trading 137.71 points or 0.21% higher at 65,524.87. The broader NSE Nifty advanced 56.30 points or 0.29% to 19,491.60.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹487.94 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped by $30 million to $594.858 billion in the week ended August 25, the Reserve Bank said on Friday.

In the previous week, the overall reserves had dropped by $7.273 billion to $594.888 billion.