File.
| Photo Credit: Reuters

The rupee depreciated 4 paise to 83.55 against the U.S. dollar in early trade on July 15, tracking the strength of the American currency in the overseas market and elevated crude oil prices.

Forex traders said a positive trend in domestic equities and significant foreign fund inflows supported the rupee and restricted the fall.

At the interbank foreign exchange market, the rupee opened at 83.53 and lost further ground to trade at 83.55 against the greenback in initial deals, registering a fall of 4 paise from its previous closing level.

On Friday, the rupee settled at 83.51 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.21, higher by 0.11%.

Brent crude futures, the global oil benchmark, advanced 0.11% to $85.14 per barrel.

Over the past week, the Indian rupee has remained steady against the dollar, consistently hovering around the 83.50 mark despite a brief weakening of the dollar, driven by changes in the macroeconomic landscape — with US CPI data coming in weaker than expected at 3 per cent leading to the dollar index dipping to 104, CR Forex Advisors MD Amit Pabari said.

“The RBI seems determined to prevent the rupee from depreciating below 83.70. Despite pressure from oil companies due to elevated oil prices, the rupee has maintained its position,” Pabari added.

Moreover, positive economic indicators such as robust growth, stable inflation, a reduced fiscal deficit, record-high RBI FX reserves, and a steady pipeline of inflows all act as supportive factors that should ideally bolster the rupee, he added.

Meanwhile, India’s forex reserves jumped $5.158 billion to $657.155 billion during the week ended July 5, the Reserve Bank of India (RBI) said on Friday.

In the domestic equity market, The BSE Sensex was trading 128.59 points, or 0.16% higher at 80,647.93 points. The broader NSE Nifty advanced 50.50 points, or 0.21%, to 24,552.65 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, as they purchased shares worth ₹4,021.60 crore, according to exchange data.

Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi.
| Photo Credit: REUTERS

The rupee traded in a narrow range and appreciated 2 paise to 83.49 against the U.S. dollar in early trade on July 11, as a positive trend in domestic equities supported the local unit, while elevated crude oil prices weighed on investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.49, registering a rise of 2 paise from its previous close.

On July 10, the rupee stayed range-bound and settled 2 paise lower at 83.51 against the U.S. dollar.

“Persistent demand for the dollar from local importers has capped the rupee’s potential gains, yet its outlook remains optimistic, buoyed by recent positive economic indicators,” CR Forex Advisors MD-Amit Pabari said.

Mr. Pabari further said the rupee’s outlook is supported by strong foreign inflows, a positive economic forecast, and India’s impressive macroeconomic growth, currently the fastest among large economies.

The Reserve Bank of India (RBI) appears determined to prevent the rupee from depreciating below 83.70, despite pressure from oil companies due to elevated oil prices, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.93, lower by 0.11 per cent.

Brent crude futures, the global oil benchmark, advanced 0.76 per cent to USD 85.73 per barrel.

On the domestic equity market front, the 30-share BSE Sensex rose 105.32 points, or 0.13 per cent, to 80,030.09 points. The broader NSE Nifty advanced 21.60 points, or 0.09 per cent, to 24,346.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 583.96 crore, according to exchange data.

 The rupee had edged up 1 paisa to close at 83.49 against the U.S. dollar on Tuesday ahead of the key testimony of US Federal Reserve Chair Jerome Powell in front of Congress. File.
| Photo Credit: Reuters

The rupee traded flat at 83.49 against the U.S. currency in the early session on July 10 amid losses in domestic equities and easing crude oil prices.

At the interbank foreign exchange market, the rupee opened flat at 83.49 against the U.S. dollar. The local currency moved in a restricted range of 83.49 to 83.50 against the greenback in early trade.

The rupee had edged up 1 paisa to close at 83.49 against the U.S. dollar on Tuesday ahead of the key testimony of US Federal Reserve Chair Jerome Powell in front of Congress.

Powell’s testimony offered little new guidance on the US central bank’s plans for when it might cut interest rates.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, eased 0.03% from overnight high levels to 105.09.

Brent crude, the global oil benchmark, declined 0.26% to $84.44 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex dropped by 143.15 points or 0.18% to close at 80,208.49. The broader NSE Nifty declined 27.20 points, or 0.11%, to 24,406.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth ₹314.46 crore, according to exchange data.

The rupee fell 4 paise to 83.48 against the US dollar on Thursday, June 20, 2024, due to firm American currency and an upward trend in crude oil prices overseas.

The local unit resisted the fall amid the unabated inflow of foreign capital but gave in to the pressure due to a muted trend in the domestic equity markets, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.43 and lost further to 83.48 against the greenback, registering a fall of 4 paise from its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.44 against the US dollar. “The local currency’s upward momentum was halted by a strong US dollar and rising crude oil prices in the international market,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.02 per cent at 104.90.

Brent crude futures, the global oil benchmark, advanced 0.02 per cent to USD 85.09 per barrel.

In the domestic equity markets, the 30-share BSE Sensex fell 72.43 points, or 0.09 per cent, to 77,265.16 points. The broader NSE Nifty declined 30.25 points, or 0.13 per cent, to 23,485.75 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth ₹7,908.36 crore, according to exchange data.

 On Wednesday, the domestic currency settled 7 paise higher at 83.44 against the dollar. File.
| Photo Credit: Reuters

The rupee inched up 1 paisa to 83.43 against the U.S. dollar in early trade on June 6 on the back of a weak American currency and positive domestic equity markets.

Forex traders said an upward movement in the crude oil prices resisted a sharp rise in the Indian currency even as investors moved cautiously ahead of the RBI’s monetary policy decision to be announced on Friday.

At the interbank foreign exchange market, the local unit opened at 83.40 and slipped to 83.43 against the greenback, trading 1 paisa higher from its previous close.

On Wednesday, the domestic currency settled 7 paise higher at 83.44 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15% lower at 104.06.

Analysts attributed the weakness in the dollar index to a sharp fall in US Treasury yields after the latest data showed private sector job growth in May was slower than estimated, raising expectations of an interest rate cut by the US Federal Reserve.

They said that market participants are expected to take further cues from the weekly U.S. jobs data to be released later in the day. Also, they said the decision of RBI’s rate-setting panel to impact investors’ sentiment.

The Monetary Policy Committee (MPC) of RBI on Wednesday started its three-day deliberations to decide the next monetary policy. Reserve Bank Governor Shaktikanta Das will announce the decisions on Friday.

“The Reserve Bank of India is set to keep its repo rate at 6.5 per cent at its June 7 review. Policy is turning more restrictive as cooling inflation pushes up real rates, hurting growth,” said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.

He further said the RBI’s record dividend payment of Rs 2.1 lakh crore to the government for FY24 may alleviate concerns about the growth outlook.

Brent crude futures, the global oil benchmark, advanced 0.38% to $78.71 per barrel.

On the domestic equity market, the 30-share BSE Sensex climbed 303.91 points or 0.41% to 74,686.15 in early trade. The NSE Nifty went up 70.25 points or 0.31% to 22,690.60.

Foreign investors were net sellers of Indian equities on Wednesday as they offloaded shares worth ₹5,656.26 crore on a net basis. FIIs bought shares worth ₹21,012.72 crore and sold equities worth ₹26,668.98 crore in the cash segment.

India’s service sector growth eased to a five-month low in May amid fierce competition, price pressures and a severe heatwave, even as new orders from international markets expanded at the steepest pace in a decade, according to a monthly survey released on Wednesday.

The seasonally adjusted HSBC India Services Business Activity Index fell to 60.2 in May from 60.8 a month earlier, its lowest mark since last December.

Mumbai:

The Reserve Bank of India (RBI) on Thursday allowed the opening of rupee accounts outside India as part of its strategic action plan to internationalise the domestic currency.

With emphasis on continuous synchronisation of the FEMA operating framework with the evolving macroeconomic environment, rationalisation of various guidelines will be of primary focus, the central bank said in its annual report.

The RBI said it has finalised a strategic action plan for 2024-25 and envisaged liberalisation of external commercial borrowing (ECB) framework and ‘Go-live’ for phase I of software platform for ECBs and trade credits reporting and approval (SPECTRA) project.

The RBI will permit opening of rupee (INR) accounts outside India by persons resident outside India (PROIs) as part of the 2024-25 agenda for internationalisation of the domestic currency.

“INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts [special nonresident rupee (SNRR) and special rupee vostro account (SRVA),” the report said.

Rationalisation of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda for the current financial year.

The RBI report further said rationalisation of regulations towards promoting the internationalisation of the INR was undertaken to enable the settlement of bilateral trade in local currencies.

Going forward, it said the liquidity operations would continue to be in sync with the stance of the monetary policy, while the foreign exchange operations would be guided by the objective of ensuring orderly movements in the exchange rate of the rupee.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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| Photo Credit: Reuters

The rupee pared initial gains and settled for the day 5 paise lower at 83.18 (provisional) against the U.S. dollar on May 28, amid a negative trend in domestic equities and on dollar demand from importer at lower levels.

Forex traders said the rupee consolidated in a narrow range as elevated crude oil prices weighed on investor sentiments, while the decline in U.S. dollar cushioned the downside.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.14 and touched an intra-day high of 83.10 and a low of 83.19.

The domestic unit finally settled for the day at 83.18 (provisional), down 5 paise from its previous close.

On Monday, the rupee pared its initial gains and settled for the day lower by 3 paise at 83.13 against the U.S. dollar.

“We expect the rupee to trade with a slight positive bias as strength in the domestic markets and expectations of fresh foreign inflows may support the rupee,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

Softening of the U.S. Dollar may also support the local unit. However, a rise in crude oil prices may cap sharp upside.

“Investors may remain cautious ahead of core PCE price index data later this week. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.47, lower by 0.12%, as investors trimmed their positions ahead of inflation data.

Brent crude futures, the global oil benchmark, rose 0.18% to $83.25 per barrel.

On the domestic equity market, the 30-share BSE Sensex declined 220.05 points, or 0.29%, to close at 75,170.45 points. The broader NSE Nifty fell 44.30 points, or 0.19%, to close at 22,888.15 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹541.22 crore, according to exchange data.

Image for representation
| Photo Credit: C. Venkatachalapathy

The rupee appreciated by 7 paise to 83.24 against the U.S. dollar on Wednesday amid softening crude oil prices in the international market.

Forex traders said the local unit faced some resistance due to subdued sentiment in the domestic equity market and foreign fund outflows.

At the interbank foreign exchange market, the local unit opened at 83.29 and inched up further to trade at 83.24 against the greenback, registering a gain of 7 paise from its previous closing level.

On Tuesday, the rupee appreciated 6 paise to close at 83.31 against the U.S. dollar.

“As the rupee seems to have started aligning with its fundamentals, in the short term, one can expect the Rupee to approach levels of 83.00 to 83.10, while the medium-term target is projected to range between 82.80 to 82.50 levels,” 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 104.63, lower by 0.02%.

Brent crude futures, the global oil benchmark, declined 0.65% to $82.34 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 37.12 points, or 0.05% lower at 73,916.19 points. The broader NSE Nifty was down 30.40 points, or 0.13%, to 22,498.65 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth ₹1,874.54 crore, according to exchange data.

On the macroeconomic front, according to an article in the RBI’s May Bulletin released on Tuesday, India is likely to grow by 7.5% in the first quarter of the current financial year, driven by rising aggregate demand and non-food spending in the rural economy.

A currency trader is pictured through the symbol for the Indian Rupee on the floor of a trading firm in Mumbai. Image for representation
| Photo Credit: REUTERS

The rupee appreciated by 6 paise to 83.31 against the U.S. dollar on Tuesday amid softening crude oil prices in the international market.

Forex traders said, however, the local unit faced some resistance due to subdued sentiment in the domestic equity market and a stronger American currency.

At the interbank foreign exchange market, the local unit opened strong at 83.32 and inched up further to trade at 83.31 against the greenback, registering a gain of 6 paise from its previous closing level.

On Friday, the rupee had settled 13 paise higher at 83.37 against the U.S. dollar. The forex markets were closed on Monday on account of general elections.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 104.57, higher by 0.11%.

Analysts attributed the strengthening dollar to higher U.S. treasury yields even as the Federal Reserve has indicated that it needs more time to assess the progress on inflation.

Brent crude futures, the global oil benchmark, declined 0.54% to $83.26 per barrel.

On the domestic equity market, the 30-share BSE Sensex was trading 71.18 points, or 0.10% lower at 73,934.76 points. The broader NSE Nifty was down 12.00 points, or 0.05%, to 22,490.00 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets during a special trading session on Saturday, as they offloaded shares worth ₹92.95 crore, according to exchange data.

Image used for representational purpose.
| Photo Credit: Reuters

The rupee settled on a flat note at 83.51 (provisional) against the U.S. dollar on Tuesday, as the support from positive domestic markets and favourable inflation data was negated by strong US Dollar and foreign fund outflows.

Forex traders said the rupee remains under pressure due to ongoing elections as well as foreign fund outflows and the same shall subside once the results are out.

At the interbank foreign exchange market, the local unit traded in a narrow range. It opened at 83.51, and touched an intraday low of 83.52 during the day.

The domestic unit finally settled for the day at 83.51 (provisional), unchanged from its previous close.

On Monday, the rupee consolidated in a narrow range and settled flat at 83.51 against the U.S. dollar.

“We expect the rupee to trade with a slight negative bias on the strong U.S. dollar and a rise in crude oil prices. Sustained FII outflows may further pressure the rupee,” Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said.

Mr. Choudhary further noted that a positive tone in the domestic markets may support the rupee at lower levels.

Traders may take cues from PPI data from the U.S. on Tuesday and CPI data later this week. “USDINR spot price is expected to trade in a range of ₹83.30 to ₹83.80,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 105.26, higher by 0.04%.

Brent crude futures, the global oil benchmark, fell 0.04% to $83.33 per barrel.

On the domestic equity market, the 30-share BSE Sensex advanced 328.48 points, or 0.45%, to close at 73,104.61 points. The broader NSE Nifty settled 113.80 points, or 0.51%, higher at 22,217.85.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth ₹4,498.92 crore, according to exchange data.

On the macroeconomic front, India’s retail inflation eased to an 11-month low of 4.83% in April, as prices of some kitchen items declined, even though the overall food basket firmed up marginally, according to government data released on Monday.

The Consumer Price Index (CPI)-based retail inflation was 4.85% in March. It was 4.7% in April 2023.