The rupee paused its three-day slide and inched up 2 paise to 83.23 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee paused its three-day slide and inched up 2 paise to 83.23 against the U.S. dollar in early trade on Friday amid positive cues from the domestic equity markets and a weak American currency overseas.

An upward trend in the crude oil prices and selling pressure from foreign equity investors continued to weigh on the Indian currency, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.24 and gained further to reach 83.23 against the greenback, up 2 paise from its previous close.

The rupee settled 8 paise lower at 83.25 against the dollar on Thursday, the third consecutive day of fall. It had dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday when it closed at 83.17 against the dollar. Forex markets were closed on Tuesday on account of Dussehra.

According to analysts, the dollar retreated as the U.S. Treasury yields dropped from its record levels after the U.S. GDP data, durable goods sales orders as well as home sales numbers exceeded the estimated growth.

Besides, the European Central Bank’s decision to leave the benchmark interest rate unchanged also came on expected lines, they said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent lower at 106.57 on Friday.

Global oil price benchmark Brent crude witnessed a sharp rise of 1.27 per cent to $89.05 per barrel.

On the domestic equity market front, the Sensex climbed 272.63 points or 0.43 per cent to 63,420.78 while the broader Nifty rose 88.20 points or 0.47 per cent to 18,945.45.

Foreign Institutional Investors sold equities worth ₹7,702.53 crore on Thursday, according to exchange data.

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee stayed on downward track for the third consecutive session and depreciated by 6 paise to 83.23 against the U.S. dollar in early trade on Thursday, tracking a firm American currency and negative equity market sentiment.

Forex traders said the Indian currency was also pressured due to massive selling of equities by foreign investors even as the crude oil prices hovered close to $90 a barrel amid geopolitical tensions in the Middle East.

At the interbank foreign exchange market, the local unit opened weak at 83.19 and then touched the lowest level of 83.23 against the greenback, registering a loss of 6 paise from its previous close.

This is the third day of fall in the rupee. It dropped 4 paise on Monday, followed by a dip of 1 paisa on Wednesday. Forex markets were closed on Tuesday on account of Dussehra. On Wednesday, the rupee closed at 83.17 against the U.S. dollar.

Analysts attributed the strengthening dollar to a record rise in the U.S. Treasury yields after positive data on home sales in the U.S. on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 106.75 on Thursday.

Global oil price benchmark Brent crude declined 0.31 per cent to $89.85 per barrel.

On the domestic equity market front, the Sensex plunged 478.55 points or 0.75 per cent to 63,570.51 while broader Nifty tanked 152.15 points or 0.80 per cent to 18,970.

Foreign Institutional Investors sold equities worth ₹4,236.60 crore on Wednesday, according to exchange data.

The rupee paused its two days of gains and settled 6 paise lower at 83.24 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee paused its two days of gains and settled 6 paise lower at 83.24 (provisional) against the U.S. dollar on Thursday as rising crude oil prices dented the investor sentiment.

Forex analysts said early gains in the domestic currency on the back of the weak dollar were reversed by the subdued domestic equity markets and concerns over foreign funds withdrawal.

At the interbank foreign exchange, the rupee opened at 83.17 and then traded between the intra-day peak of 83.12 and the lowest level of 83.25 against the greenback. The local unit finally settled at 83.24 (provisional), registering a loss of 6 paise from its previous close.

The rupee had settled 7 paise higher on Wednesday, a day after gaining 3 paise against the American currency.

Market participants were also awaiting the industrial production data for August and inflation numbers for September to be released later in the day, which will provide insights into the country’s economic health.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee is expected to trade with a slight positive bias on expectations of a decline in India’s inflation and a rise in risk appetite in global markets.

“Traders may remain cautious ahead of India’s CPI and IIP data. Traders may also take cues from U.S. CPI, weekly unemployment claims and Federal Budget balance data. USD-INR spot price is expected to trade in a range of ₹82.70 to ₹83.60,” Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09 per cent lower at 105.72.

Brent crude futures, the global oil benchmark, witnessed a sharp rise of 1.20 per cent to $86.85 per barrel.

On the domestic equity market front, the BSE Sensex closed 64.66 points or 0.10 per cent lower at 66,408.39. The broader NSE Nifty declined 17.35 points or 0.09 per cent to 19,794.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹421.77 crore, as per exchange data.

The rupee settled flat at 83.27 against the U.S. dollar
| Photo Credit: SUDERSHAN V

The rupee settled flat at 83.27 against the U.S. dollar amid a weak trend in domestic equities and surging crude oil prices in the international markets.

Forex traders said the safe-haven dollar gained ground amidst heightened concerns in the Middle East.

At the interbank foreign exchange, the domestic unit opened at 83.24 and finally settled at 83.27 against the American currency.

During the day, the rupee witnessed an intra-day high of 83.21 and a low of 83.28 against the greenback.

On Friday, the rupee declined 2 paise to settle at 83.27 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.43 per cent higher at 106.49.

Brent crude futures, the global oil benchmark, rose 3.29 per cent to $87.36 per barrel.

Amid escalating Israel-Hamas conflict heavily impacted risk assets, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

The market focus is currently on the fighting and how it could affect the oil market on supply concerns, Bhansali said, adding that accordingly, risky assets were sold off and so was the rupee though well controlled by the RBI.

The market is awaiting FOMC meeting minutes due on Wednesday, while important data due Tuesday are speeches by the ECB president and IMF/World Bank meetings, Mr. Bhansali said.

On the domestic equity market front, the BSE Sensex closed 483.24 points or 0.73 per cent lower at 65,512.39. The broader NSE Nifty declined 141.15 points or 0.72 per cent to 19,512.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹90.29 crore, according to exchange data.

Meanwhile, India’s forex reserves dropped further by $3.794 billion to $586.908 billion for the week ended September 29, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had declined by $2.335 billion to $590.702 billion as of September 22.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee appreciated 14 paise to settle at 83.05 (provisional) against the U.S. dollar on September 29, boosted by a firm trend in equity markets and a sharp correction in the greenback against major rivals overseas.

However, selling pressure from foreign equity investors and rising crude oil prices in international markets weighed on the domestic unit, forex traders said.

The rupee opened strong at 83.13 against the U.S. dollar and moved in the range of 83.03 to 83.13 against the greenback. It finally settled at 83.05 (provisional), registering a gain of 14 paise from its previous close.

On Thursday, the rupee settled 3 paise higher at 83.19

.Analysts said the rupee also strengthened due to a significant decline in India’s current account deficit (CAD). However, rising interest rates and U.S. bond yields prompted foreign investors to stay in selling mode.

CAD almost halved to $9.2 billion, or 1.1%, of GDP in the first quarter of the current fiscal from $17.9 billion (2.1% of GDP) a year ago, the Reserve Bank of India said on Thursday

.Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: “Indian rupee strengthened on Friday on weak U.S. dollar index and a decline in crude oil prices. Positive tone in domestic markets also strengthened the rupee. However, FII outflows capped sharp gains.”

The dollar declined on concerns over looming U.S. government shutdown fears. Disappointing economic data from the U.S. also weighed on the greenback, he added.

“We expect the rupee to trade with a slight positive bias on as U.S. government shutdown worries may keep the dollar pressure. Recovery in global markets may also support the local currency.

“However, expectations of recovery in crude oil prices and selling pressure from foreign investors may weigh on the rupee,” Mr. Choudhary said, adding “Traders may also take cues from India’s fiscal deficit data. $/₹ spot price is expected to trade in a range of ₹82.70 to ₹83.40”

.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined by 0.52% to 105.68.

Brent crude, the global oil benchmark, was trading 0.36% higher at $95.72 per barrel.

On the domestic equity front, the 30-share BSE Sensex jumped 320.09 points or 0.49% to settle at 65,828.41. The broader Nifty climbed 114.75 points or 0.59% to end at 19,638.30.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth ₹3,364.22 crore, according to exchange data.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee declined by 20 paise to settle at 83.14 (provisional) against the U.S. dollar on September 25 due to rising crude oil prices and a strong American currency against major rivals overseas.

Subdued equity markets and withdrawal of foreign funds also weighed on the domestic currency, forex traders said.

At the interbank foreign exchange market, the local unit opened weak at 83.04 and traded between a high of 83.04 and a low of 83.15 against the greenback.

It finally settled at 83.14 (provisional) against the dollar, registering a fall of 20 paise from the previous close.

On Friday, the rupee climbed 19 paise to close at 82.94 against the U.S. dollar.

Friday’s gain in the rupee was attributed to JP Morgan’s announcement that it will include Indian government securities in its global bond index starting June 2024, a move which is expected to bring in $25-30 billion of inflows into the Indian debt market.

On the other hand, the dollar strengthened due to an increased month-end demand of the American currency by importers and rising U.S. Treasury yield amid concerns of further interest rate hikes by the U.S. Federal Reserve.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said, “Indian rupee declined on Monday on a strong dollar and weak domestic equities. Selling pressure from FIIs also put downside pressure on the rupee. US.. dollar gained on hawkish FOMC last week”.

He said the rupee is likely to trade with a slight negative bias on strong dollar and risk aversion in global markets.

“FII outflows and elevated crude oil prices may put further downside pressure on the domestic currency. However, any intervention by the RBI may support the rupee at lower levels. $/₹spot price is expected to trade in a range of ₹82.75 to ₹83.60,” Mr. Chaudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.08% to 105.67.

Brent crude futures, the global oil benchmark, advanced 0.45% to $93.69 per barrel.

On the domestic equity market front, the BSE Sensex closed 14.54 points or 0.02% higher at 66,023.69. The broader NSE Nifty settled flat at 19,674.55.

India’s foreign exchange reserves declined by $867 million to $593.037 billion in the week ended September 15, the Reserve Bank said on Friday.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth ₹1,326.74 crore, according to exchange data.