The rupee appreciated 8 paise to 83.44 against the U.S. dollar in early trade on Thursday, as the American currency retreated from its elevated levels.
| Photo Credit: C. Venkatachalapathy

The rupee appreciated 8 paise to 83.44 against the U.S. dollar in early trade on Thursday, as the American currency retreated from its elevated levels.

Forex traders said a negative trend in domestic equities and foreign fund outflows weighed on the local unit and restricted the up move.

At the interbank foreign exchange market, the local unit opened at 83.49 against the greenback. It later touched 83.44 in initial trade, registering a rise of 8 paise from its previous close.

On Wednesday, the rupee stayed range-bound and settled 1 paisa lower at 83.52 against the U.S. dollar.

“Indian rupee was sold against the dollar as FPIs continued to sell stocks worth over ₹6,000 crore on Wednesday and bought dollars keeping US dollar higher,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Dollar buying could reemerge despite U.S. dollar selling by the Reserve Bank of India (RBI) to protect the rupee, Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 105.51, lower by 0.03%.

“The US FED speakers warned that interest rates could remain higher for longer. More speakers would give their rhetoric on Thursday and Friday. The dollar index was stable at 105.54 while the US 10-year bond yield rose from 4.46% to 4.50%,” Mr. Bhansali said.

Brent crude futures, the global oil benchmark, rose 0.43% to USD 83.94 per barrel.

On the domestic equity market front, the 30-share BSE Sensex declined 176.2 points or 0.24% to 73,290.19 in early trade. The NSE Nifty fell 49.75 points or 0.22% to 22,252.75 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday, as they offloaded shares worth ₹6,669.10 crore, according to exchange data.

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.

Image used for representative purpose only.
| Photo Credit: Nagara Gopal

The rupee depreciated 6 paise to 83.58 against the U.S. dollar in early trade on April 19, weighed down by a negative trend in domestic equities and elevated crude oil prices.

Forex traders said the strength of the American currency in the overseas market also dented investor sentiments.

At the interbank foreign exchange, the rupee opened at 83.58 against the dollar, registering a fall of 6 paise over its previous close.

The local unit pared the initial losses and also touched a high of 83.46 against the American currency in early trade on Friday.

On Thursday, the rupee rebounded from its all-time low level and closed 9 paise higher at 83.52 against the U.S. dollar Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.17, higher by 0.02%.

Brent crude futures, the global oil benchmark, rose 2.46% to USD 89.25 per barrel.

“Brent Oil prices moved up to USD 90.48 per barrel after Iran threatened to review its stance on nuclear weapons if Israel attacked Tehran’s nuclear sites,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Asian currencies were a tad lower on news of the conflict rising further as IDR fell to 16281, while the won fell to 1390. CNH also was lower at 7.2569. The yen was higher at 153.68 on account of risk aversion.

“Risk-off sentiments will keep the rupee on the weaker side,” Bhansali said.

On the domestic equity market, the 30-share BSE Sensex was trading 489.77 points, or 0.68% lower at 71,999.22 points. The broader NSE Nifty was down 144.35 points, or 0.66%, to 21,851.50 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹4,260.33 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.

The rupee on April 04 recovered 9 paise to close at 83.44 (provisional) against the U.S. dollar, tracking a firm trend in domestic markets and upbeat macroeconomic data.

A weak U.S. dollar against major crosses overseas also supported the domestic unit. However, elevated crude oil prices and sustained foreign fund outflows capped the sharp gain, forex traders said.

Moreover, market participants remained cautious ahead of the Reserve Bank’s rate-setting panel’s decision to be announced on April 05, they added.

At the interbank foreign exchange market, the local unit opened at 83.44 against the greenback. The unit hit an intra-day high of 83.42 and a low of 83.46.

The local unit finally settled at 83.44 (provisional) against the dollar, higher by 9 paise from its previous close.

On April 03, the rupee depreciated 11 paise to close at 83.53 against the U.S. dollar.

Traders said market participants are awaiting the RBI MPC policy decision for further cues. The Reserve Bank’s rate-setting panel on April 03 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 April 5.

“We expect the rupee to trade with a slight negative bias on the surge in crude oil and gold prices. Renewed geopolitical tensions in the Middle East and selling pressure from FIIs may also weigh on the rupee. However, strength in the domestic equities and reports of selling of dollars by RBI may support the rupee at lower levels,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.16% lower at 104.08 on disappointing services PMI from the U.S. and dovish Fedspeak.

U.S. ISM services PMI fell to 51.4 in March 2024 vs 52.6 in February 2024. Meanwhile, Fed Chair Jerome Powell reiterated his wait-and-watch stance and said that the central bank needs more confidence that inflation is moving lower sustainably.

Brent crude futures, the global oil benchmark, fell 0.13% to $89.23 per barrel.

On the domestic equity market front, Sensex advanced 350.81 points, or 0.47%, to close at an all-time high of 74,227.63. The Nifty jumped 80.00 points, or 0.36%, to settle at its lifetime high of 22,514.65.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on April 03 as they offloaded shares worth ₹2,213.56 crore, according to exchange data.

Meanwhile, on the domestic macroeconomic front, India’s services sector witnessed one of the strongest growth rates in over 13-and-a-half years in March on the back of strong demand that spurred sales and business activity, a monthly survey said on April 04.

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 used for representational purpose only.
| Photo Credit: Reuters

The rupee declined 20 paise to 83.33 against the U.S. dollar on March 22 due to a stronger greenback in the global markets and dollar buying by importers.

At the interbank foreign exchange market, the local unit opened lower at 83.28 against the previous close of 83.13 to a dollar. The unit moved in a range of 83.23 to 83.33 in morning deals.

The local unit was trading at 83.33 against the dollar at 9.30 a.m., down by 20 paise from its previous close of 83.13.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.72% to 104.17 as concerns over the slowing global economy boosted demand for the greenback.

The U.S. dollar index had retreated from 104 levels on Thursday after the Federal Open Market Committee (FOMC) kept interest rates unchanged in the range of 5.25-5.5% range.

Fed Chair, Jerome Powell stuck to his previous forecast of three rate cuts in 2024.

Brent crude futures, the global oil benchmark, fell 0.70% to $85.18 per barrel.

Analysts said dollar demand from importers, mainly oil companies, and debt repayment outflows weighed on the rupee.

On the domestic equity market front, Sensex declined by 372.64 points to 72,268.55 while broader Nifty dropped 94.45 points to 21,917.50 in the morning session.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth ₹1,826.97 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee rebounded 14 paise to 83.05 against the U.S. currency in early trade on Thursday as the dollar retreated from high levels in global markets after the U.S. Federal Reserve indicated three rate cuts this year.

At the interbank foreign exchange market, the rupee opened strong at 83.07 against the U.S. dollar compared to the previous close of 83.19. The local unit moved in a range of 83.08 to 83.04 in early deals.

The rupee traded at 83.05 to a dollar at 9.25 a.m., showing gains of 14 paise over the last close. It settled at a two-month low of 83.19 on Wednesday ahead of the announcement of U.S. Fed policy amid a strong American currency and elevated crude oil prices.

The Indian currency gained strength as the U.S. Federal Reserve indicated three rate cuts this year despite sticky inflation. The U.S. Fed kept its interest rates unchanged in the policy meeting on Wednesday.

The U.S. dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20% lower at 103.22.

Brent crude futures, the global oil benchmark, rose 0.63% to $86.49 per barrel, recovering from overnight losses.

On the domestic equity market front, Sensex advanced 538.01 points to 72,639.70 while the Nifty rose 162.90 points to 22,002.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹2,599.19 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 used for representational purpose only.
| Photo Credit: Special Arrangement

The rupee appreciated by 2 paise to trade at 82.84 against the U.S. dollar in the opening session on March 18 following foreign fund inflows.

An uptick in crude oil prices and listless trade in domestic stocks capped rupee gains in opening trade, forex dealers said.

The local currency moved in a narrow range of 82.83 to 82.84 against the dollar in early deals. The rupee closed at 82.86 on Friday.

The U.S. dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading flat at 103.43.

Crude oil prices firmed up in early Asian trade. Brent crude, the global oil benchmark, gained 0.35% to trade at $85.64 per barrel. Oil for Indian basket was up at $84.50 per barrel.

Domestic equity markets were trading almost flat in morning session on Monday. Benchmark Sensex gained around 0.1% to trade at 72,718.72 while Nifty edged up 0.06% to 22,036.20.

Foreign investors turned net buyers in Indian stocks on Friday as they purchased shares worth ₹848.56 crore on net basis. FPIs bought shares worth ₹40,710 crore in the first fortnight of the month amid an improvement in the global economic landscape and robust domestic macroeconomic outlook.