The rupee was trading in a narrow range against the U.S. dollar in early trade on May 8.
| Photo Credit: REUTERS

The rupee was trading in a narrow range against the U.S. dollar in early trade on May 8, amid a negative trend in domestic equities and strong American currency.

Forex traders said significant foreign fund outflows in the international market dented investors’ sentiments.

At the interbank foreign exchange market, the local unit opened at 83.50, and touched 83.49 in initial trade, registering a gain of 2 paise from its previous close.

On May 7, the rupee closed at 83.51 against the American currency.

Forex traders easing crude oil prices supported the rupee and restricted the downside.

“Demand for dollars from foreign investors kept the rupee down on May 7 and though May 8th’s opening looks to be flat, the demand should continue. Selling by the Reserve Bank of India (RBI) could keep it range-bound.

“Importers are expected to adopt ‘wait and watch’ approach with a stop loss on breach of 83.60,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.55, higher by 0.14%.

Brent crude futures, the global oil benchmark, fell 0.43% to $82.80 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 256.62 points, or 0.35% lower at 73,255.23 points. The broader NSE Nifty was down 60 points, or 0.27%, to 22,242.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on May 7 as they offloaded shares worth ₹3,668.84 crore, according to exchange data.

Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels, while the strength of the American currency in the overseas market weighed on the local unit and restricted the up move.
| Photo Credit: R. Ragu

The rupee appreciated 8 paise to 83.23 against the U.S. dollar in early trade on April 8, supported by positive domestic equities and fresh foreign fund inflows.

Forex traders said investor sentiments got a boost as crude oil prices retreated from their elevated levels, while the strength of the American currency in the overseas market weighed on the local unit and restricted the up move.

At the interbank foreign exchange market, the local unit opened at 83.27 against the greenback. It later touched 83.23 in initial trade, higher 8 paise from its previous close.

On Friday, the rupee appreciated 8 paise to close at 83.31 against the U.S. dollar as the Reserve Bank of India kept the benchmark interest rate unchanged at 6.5% for the seventh time in a row.

The rupee is expected to trade in a range as the Reserve Bank continues to protect it from falling further while inflows may bring it to 83.20, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP said.

Market participants are awaiting key macroeconomic data from the domestic as well as global front for further cues.

On the domestic front, CPI, IIP and WPI are scheduled to be released this week, while on the global front forex traders will keep a watch on U.S. CPI data.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% higher at 104.34.

Brent crude futures, the global oil benchmark, fell 1.61% to USD 89.70 per barrel.

On the domestic equity market front, the 30-share BSE Sensex scaled a fresh lifetime high of 74,658.95. The Nifty climbed to its new all-time peak of 22,623.90.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹1,659.27 crore, according to exchange data.

India’s foreign exchange reserves increased by USD 2.951 billion to USD 645.583 billion for the week ended March 29, the Reserve Bank of India (RBI) said on Friday.

This is the sixth consecutive week of a jump in overall reserves. The kitty had increased by USD 140 million to USD 642.631 billion in the previous week.

Image for representational purposes only.
| Photo Credit: Reuters

The rupee witnessed range-bound trading in initial deals against the U.S. dollar on April 2, weighed down by a strong American currency and elevated crude oil prices.

At the interbank foreign exchange, the rupee opened at 83.37 against the greenback, then touched 83.35, registering a rise of 4 paise over its previous close.

On March 28, the rupee depreciated 6 paise to settle at 83.39 against the U.S. dollar.

Forex market was closed on March 29 and April 1 on account of ‘Good Friday’ and the annual account closing of banks, respectively.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% higher at 105.06.

Brent crude futures, the global oil benchmark, advanced 0.43% to $87.80 per barrel.

On the domestic equity market front, Sensex declined 59.21 points, or 0.08%, to 73,955.34 points. The Nifty fell 12.20 points, or 0.05%, to 22,449.80 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on April 1 as they offloaded shares worth ₹522.30 crore, according to exchange data.

Meanwhile, India’s forex reserves increased by $140 million to touch an all-time high of $642.631 billion during the week ended March 22, the Reserve Bank said.

This is the fifth consecutive week of a jump in the overall reserves. The kitty had increased by $6.396 billion to $642.492 billion in the previous week.

On the domestic macroeconomic front, the government’s fiscal deficit at ₹15 lakh crore at February-end touched 86.5% of the revised annual target, according to official data released on Thursday.

Moreover, GST collections in March grew 11.5% to ₹1.78 lakh crore on higher domestic sales.

The rupee depreciated 6 paise to settle at 83.39 (provisional) against the U.S. dollar on March 28. File
| Photo Credit: Nagara Gopal

The rupee depreciated 6 paise to settle at 83.39 (provisional) against the U.S. dollar on March 28 due to a strengthening greenback against major rivals overseas and rising crude oil prices in the international markets.

However, a firm trend in domestic equity markets and recent foreign fund inflows supported the domestic currency, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.32 and oscillated between the intra-day peak of 83.30 and the lowest level of 83.40 against the greenback. The local unit finally settled at 83.39 (provisional), registering a loss of 6 paise from its previous close.

On March 27, the rupee declined 4 paise to close at 83.33 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.34% higher at 104.42.

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas, said the Indian rupee depreciated on March 27 on strong U.S. dollar and dollar demand from oil marketing companies (OMCs). Weak Asian currencies and a rise in crude oil prices also weighed on the rupee. However, the surge in domestic markets and FII inflows cushioned the downside.

“We expect the rupee to trade with a slight negative bias on strong U.S. dollar and weak Asian currencies. Demand for dollars from importers and OMCs towards the end of the financial year may put downside pressure also weigh on the rupee.

“However, strong domestic markets may support the rupee at lower levels. Traders may take cues from final GDP, weekly unemployment claims, pending home sales and revised consumer sentiment data from the US. USD-INR spot price is expected to trade in a range of ₹83.20 to ₹83.70,” Mr. Choudhary said.

Brent crude futures, the global oil benchmark, rose 0.52% to USD 86.54 per barrel.

On the domestic equity market front, Sensex surged 655.04 points, or 0.90%, to settle at 73,651.35 points. The Nifty rose 203.25 points, or 0.92%, to close at 22,326.90 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth ₹2,170.32 crore, according to exchange data.

Image for representational purposes only.
| Photo Credit: Getty Images

The rupee declined 5 paise at 82.95 against the U.S. dollar on March 19 due to firm crude oil prices and foreign fund outflows.

At the interbank foreign exchange market, the rupee opened at 82.94 to a dollar, down 4 paise over the previous close of 82.90.

The local currency moved in a tight range of 82.93 to 82.95 to a dollar in early deals. The rupee traded at 82.95, down 5 paise, against the U.S. dollar at 9.15 a.m.

A stronger U.S. dollar and firm bond yields ahead of the U.S. Fed interest rate decision also weighed on the local unit, forex dealers said.

The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies gained 0.20% to 103.64.

Brent crude, the global crude oil benchmark, also stayed above $86 per barrel to trade at around four-month high levels.

Losses in local stocks also weighed on the rupee. Benchmark BSE Sensex declined by 398.79 points or 0.55% to 72,349.63 while broader Nifty dropped 120.10 points or 0.54% to 21,935.60.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,051.09 crore on March 18, according to exchange data.

Image for representation only
| Photo Credit: C. Venkatachalapathy

The rupee appreciated 3 paise to 82.99 against the U.S. dollar in early trade on Thursday, amid a positive trend in domestic equities.

Forex traders said rupee is trading in a narrow range as strong American currency and elevated crude oil prices weighed on the local unit and restricted the uptick in the domestic unit.

At the interbank foreign exchange, the domestic currency opened at 83.00, then touched 82.99 against the greenback in initial deals, registering a rise of 3 paise from its previous close.

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

“In the ongoing tug-of-war between positive and negative factors influencing the market, there is a tilt towards the positive aspects favouring the rupee,” CR Forex Advisors MD- Amit Pabari said.

Momentum suggests the pair will likely consolidate within the narrow range of 82.80 to 83.10, with any upward movement above 83 seen as a selling opportunity, Mr. Pabari said.

“Overall, market sentiment was buoyed by the rupee’s stronger fundamentals, supported by expectations of higher growth rates and controlled inflation,” Mr. Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent lower at 104.69.

Brent crude futures, the global oil benchmark, declined 0.49% to $81.20 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 86.23 points or 0.12% higher at 71,909.06 points. The broader NSE Nifty advanced 57.90 points or 0.27% to 21,897.95 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.

Representational image of a man counting money
| Photo Credit: Reuters

The rupee depreciated 4 paise to 83.12 against the U.S. dollar in early trade on Wednesday, tracking a negative trend in domestic equities.

Forex traders said the strength of the American currency and elevated crude oil prices in the international market dented investors’ sentiments.

At the interbank foreign exchange, the rupee opened at 83.11 against the dollar and touched an early low of 83.12 and a high of 83.09 in initial trade.

On Tuesday, the rupee depreciated 8 paise to close at 83.08 against the U.S. dollar.

“The Indian rupee is expected to fall to 83.08 as all risk assets fell against the mighty dollar with Gold also falling below $2,000 per ounce to $1,991.51. Flows should continue in the currency thus keeping it range bound after the lower opening,” said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.81, lower 0.14%.

Brent crude futures, the global oil benchmark, fell 0.16% to $82.64 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 617.81 points or 0.86% lower at 70,937.38 points. The broader NSE Nifty was down 180.50 points or 0.83% to 21,562.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹376.32 crore, according to exchange data.

The rupee settled on a flat note at 82.96 (provisional) against the U.S. dollar.
| Photo Credit: PTI

The rupee settled on a flat note at 82.96 (provisional) against the U.S. dollar on February 8, after the Reserve Bank of India decided to keep the key policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation.

Forex traders said a negative trend in domestic equities weighed on investor sentiments.

At the interbank foreign exchange, the rupee opened at 82.94 against the dollar and moved in a narrow range and settled for the day at 82.96 against the American currency, as the central bank retained the repo rate at 6.5% for the sixth consecutive time.

During the day, the rupee touched an intraday high of 82.89 and a low of 83 against the U.S. dollar.

On February 7, the rupee appreciated 9 paise to close at 82.96 against the dollar.

The Indian rupee remained flat as RBI maintained status quo in its monetary policy for the sixth consecutive time and left Repo Rate unchanged at 6.5%, in line with street expectations.

The central bank revised FY24 GDP projections higher at 7.3% from 7% and projected FY25 GDP at 7%. It also projected CPI (consumer price-based inflation) in FY25 lower at 4.5%.

However, the rupee lost earlier gains as domestic markets declined and U.S. dollar also recovered.

“We expect rupee to trade with a slight negative bias on expectations that US dollar may recover amid hawkish U.S. Fed speak and geopolitical tensions,” said Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas.

Israeli Prime Minister rejected a peace proposal by Hamas which may also lead to rise in crude oil prices.

However, positive global markets may support rupee at lower levels. Traders may take cues from weekly unemployment claims data from U.S. and speeches by various Fed officials. USD-INR spot price is expected to trade in a range of ₹82.70 to ₹83.30.

Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das on February 8 said the Monetary Policy Committee (MPC) will remain watchful of food inflation so that the benefits gained are not frittered away.

The RBI on February 8 projected a Gross Domestic Product (GDP) growth of 7% for 2024-25, which is lower than the 7.3% expansion estimated for the current fiscal.

Mr. Das said rural demand continues to gather pace, urban consumption remains strong and investment cycle is gaining steam on the back of increased capex.

He said there are signs of revival in private investments.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% higher at 104.08.

Brent crude futures, the global oil benchmark, rose 0.16% to $79.34 per barrel.

In the domestic equity market, the 30-share BSE Sensex closed 723.57 points, or 1%, lower at 71,428.43. The broader NSE Nifty declined 212.55 points, or 0.97%, to 21,717.95.

Foreign institutional Investors (FIIs) were net sellers in the capital markets on February 7 as they offloaded shares worth ₹1,691.02 crore, according to exchange data.

The rupee appreciated by 2 paise to 83.23 against the U.S. dollar in early trade on October 18 on the back of a weaker American currency and an inflow of foreign funds in the domestic equity markets.
| Photo Credit: Reuters

The rupee appreciated by 2 paise to 83.23 against the U.S. dollar in early trade on October 18 on the back of a weaker American currency and an inflow of foreign funds in the domestic equity markets.

Forex traders said surging crude oil prices and negative trends in equity markets, however, capped the rise in the domestic currency.

At the interbank foreign exchange, the domestic unit opened at 83.24 against the dollar and then inched up to 83.23, registering a gain of 2 paise over its previous close.

On October 17, the rupee settled at 83.25 against the U.S. dollar.

Analysts expect the rupee to stay in a narrow range as traders may take cues from retail sales and industrial production data from the U.S. Data on the U.S. crude weekly inventory, China’s GDP, industrial production, and U.K. and European region inflation are also awaited.

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Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 106.18.

Brent crude futures, the global oil benchmark, witnessed a sharp rise of 2.10% to $88.48 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 110.73 points or 0.17% lower at 66,317.36. The broader NSE Nifty declined 24.75 points or 0.12% to 19,786.75.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on October 17 as they purchased shares worth ₹263.68 crore, according to exchange data.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points. Image for representation purpose only. File
| Photo Credit: Reuters

The rupee recovered 6 paise to settle at 82.74 (provisional) against the U.S. currency on Wednesday following weakness in the U.S. dollar in global markets.

FII inflows into the capital market and firm equity markets supported the local unit while gains in crude oil prices restricted the rupee upside, according to analysts.

At the interbank foreign exchange, the domestic unit opened higher at 82.67 amid overnight losses in the U.S. dollar against major global rivals. It moved between a high of 82.66 and a low of 82.81 in intra-day trade.

The rupee finally closed at 82.74 against the dollar, a gain of 6 paise compared to the closing level of 82.80 on Tuesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 103.50 after U.S. data suggested that labour market was cooling, a scenario that could provide support for the U.S. Federal Reserve in eventual easing interest rates.

Brent crude futures, the global oil benchmark, rose 0.56% to $85.97 per barrel.

On the domestic equity market front, the BSE Sensex closed higher by 11.43 points or 0.02% at 65,087.25 points while the broader Nifty advanced by 4.80 points to close at 19,347.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they bought shares worth ₹61 crore, according to exchange data.