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| Photo Credit: Reuters

The rupee depreciated 9 paise to close at 85.73 (provisional) against the U.S. dollar on Thursday (January 2, 2025), as strong dollar demand from importers and foreign fund outflows dented investor sentiments.

Forex traders said the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year. Moreover, persistent foreign fund outflows further dented investors’ sentiments.

Additionally, global markets are expected to see low volumes as the holiday season is underway in major economies like those in Europe.

t the interbank foreign exchange, the rupee opened on a weak note and witnessed an intra-day low of 85.79 and a high of 85.68 against the American currency. The local unit settled for the day at 85.73 (provisional), registering a fall of 9 paise over its previous close amid a sharp recovery in domestic equities.

On Wednesday (January 1, 2024), the rupee settled flat at 85.64 against the U.S. dollar.

On December 27, the local currency touched its lifetime intra-day low of 85.80 against the greenback.

“We expect the rupee to trade with a negative bias on strength in the US Dollar and dollar demand from importers. Sustained FII outflows may further pressure the rupee,” said Anuj Choudhary — Research Analyst at Mirae Asset Sharekhan.

“However, any intervention by the Reserve Bank of India (RBI) may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 85.50 to 86, Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% lower at 108.46.

Brent crude, the global oil benchmark, rose 0.91% to $75.32 per barrel in futures trade.

Meanwhile, India’s manufacturing sector growth fell to a 12-month low in December, as new business orders and production expanded at softer rates, a monthly survey said on Thursday (January 2, 2025).

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index was at 56.4 in December, down from 56.5 in November, indicating a weaker improvement in operating conditions.

In the domestic equity market, the 30-share BSE Sensex settled at 1,436.30 points, or 1.83%, up at 79,943.71 points, while the Nifty was higher by 445.75 points, or 1.88%, to 24,188.65 points.

Foreign Institutional Investors (FIIs) offloaded ₹1,782.71 crore in the capital markets on a net basis on Wednesday (January 1, 2025), according to exchange data.

On the domestic macroeconomic front, the total gross goods and services tax (GST) revenue grew 7.3% to ₹1.77 lakh crore in December as compared to ₹1.65 lakh crore in the same month a year ago.

In November, GST mop-up was Rs 1.82 lakh crore with 8.5% annual growth. The highest-ever collection was in April 2024 at over ₹2.10 lakh crore.

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| Photo Credit: Reuters

The rupee extended its slide for the second straight session and depreciated 9 paise to settle at a fresh all-time low of 85.20 (provisional) against the U.S. dollar on Tuesday (December 24, 2024). The rupee was dragged by a strong greenback against major crosses overseas and subdued domestic equities.

According to analysts, increased demand for the dollar due to month-end payment obligations and the fear of an aggressive import tariff by the Donald Trump administration in the U.S. strengthened the greenback.

“Besides, surging crude oil prices pushed the rupee down further,” they added.

At the interbank foreign exchange, the rupee opened at 85.10 and touched the lowest ever level of 85.21 against the greenback during intra-day. The unit finally ended the session at a fresh all-time low of 85.20 (provisional) against the dollar, registering a loss of 9 paise from its previous close.

On Monday (December 23, 2024), the rupee settled 7 paise lower at 85.11 against the U.S. dollar.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee fell to a fresh all-time low on weak domestic markets and a strong U.S. dollar due to increased demand from importers and surging crude oil prices.

He said a hawkish tone of the U.S. Federal Reserve and an improved U.S. economy may further support the dollar.

“FII outflows may also weigh on the rupee. However, any intervention by the RBI may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of ₹85 to ₹85.40,” Mr. Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.11 % at 107.93, amid soaring U.S. Treasury yields and the fear of delayed interest rate cuts by the U.S. Federal Reserve.

Brent crude, the global oil benchmark, rose 0.69% to $73.13 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex closed lower by 67.30 points, or 0.09%, at 78,472.87 points, while Nifty fell 25.80 points, or 0.11% to close at 23,727.65 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday (December 23, 2024), as they offloaded shares worth ₹168.71 crore, according to exchange data.

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| Photo Credit: Reuters

The rupee depreciated by 4 paise to settle at an all-time low of 84.87 (provisional) against the U.S. dollar on Thursday (December 12, 2024), dragged down by negative domestic equity markets, outflow of foreign funds and rise in crude oil prices.

Forex traders said investors were awaiting cues from domestic inflation data to be released later in the day even as an elevated dollar index weighed on the Indian currency.

At the interbank foreign exchange, the rupee opened at 84.85 and touched the lowest-ever level of 84.88 against the greenback during intra-day trade. The unit finally ended the session 4 paise down at a fresh all-time low closing level of 84.87 (provisional) against the dollar.

On Wednesday (December 11, 2024), the rupee settled with a gain of 2 paise at 84.83 against the U.S. dollar.

Rupee’s previous record low closing level was recorded on December 9, when it settled 20 paise lower at 84.86 against the dollar.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee touched a fresh all-time low on strong U.S. dollar and weak domestic markets.

He further said the U.S. dollar gained on rising inflation in the US. However, it was in line with estimates.

“Surge in global crude oil prices may further pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from PPI (producer price index) and weekly unemployment claims data from the U.S. USD-INR spot price is expected to trade in a range of 84.65 to 85.10,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.16% at 106.22.

Brent crude, the global oil benchmark, rose 0.35% to $73.78 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex closed lower by 236.18 points or 0.29% at 81,289.96 points. The Nifty was down 93.10 points, or 0.38%, to 24,548.70 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday (December 11, 2024), as they offloaded shares worth ₹1,012.24 crore, according to exchange data.