Tag: Rupee Rate Today

Rupee strengthens vs dollar on IPO flows; gains capped before US FOMC statement, BFSI News, ET BFSI

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NEW DELHI: The rupee strengthened marginally versus the US dollar on Wednesday because of a drop in global crude oil prices and on the back of dollar sales by foreign banks for overseas investments in initial public offerings of Indian companies, dealers said.

The domestic currency on Wednesday opened at 74.60 against the US dollar as against 74.6775 at the previous close. The local unit, which was last at 74.5550 versus the greenback, moved in the range of 74.5375-74.6425 so far in the day.

Crude oil prices declined, providing some relief for traders on the twin fronts of inflation and the trade deficit. India is the world’s third-largest importer and consumer of crude oil.

Oil futures for December delivery on the New York Mercantile Exchange declined 0.2 per cent to close at $83.91 per barrel on Tuesday.

The rupee had also gained sharply on Tuesday on account of flows for overseas investment into local companies, with the domestic currency adding 0.3 per cent versus the greenback.

“There were flows for Policybazaar IPO etc. And now we have Paytm IPO lined up as well next week,” a dealer with a private bank said on condition of anonymity.

“Oil seems to have stabilised a bit after the surge of this month. But having said that, we don’t expect a major degree of appreciation before the Fed’s statement. Whatever they say on tapering is going to set the tone for markets,” he said.

The US Federal Open Market Committee is scheduled to release its monetary policy statement late Wednesday.

Details of a potential rollback in quantitative easing in the world’s largest economy may play a major role in overseas investors’ appetite for emerging market currencies such as the rupee.

Government bonds were steady, with the yield on the 10-year benchmark 6.10 per cent 2031 paper unchanged at 6.36 per cent. Bond prices and yields move inversely.

Bond traders kept to the sidelines in a heavily truncated week. The market will be shut on Thursday and Friday on account of Diwali and Diwali Balipratipada.



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Rupee inches higher by 8 paise to 74.79 against US dollar in early trade, BFSI News, ET BFSI

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Mumbai: The rupee inched higher by 8 paise to 74.79 against the US dollar in opening trade on Tuesday ahead of the US Fed and other central bank meeting this week. At the interbank foreign exchange, the rupee opened strong at 74.83 against the dollar and inched further to 74.79 in early deals, a rise of 8 paise over its previous close.

On Monday, the rupee had settled at 74.87 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03 per cent to 93.84.

Most emerging market and Asian currencies have started mixed this Tuesday, while crude continued to remain firm and could appreciation bias, Reliance Securities said in a research note.

Global oil benchmark Brent crude futures rose 0.08 per cent to USD 84.78 per barrel.

On the domestic equity market front, BSE Sensex was trading 20.46 points or 0.03 per cent higher at 60,158.92, while the broader NSE Nifty advanced 9.35 points or 0.05 per cent to 17,939.00.

Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 202.13 crore, as per exchange data.

According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, before the US Fed meeting, OPEC and the NFPR, all markets are trading in a small range.

Rupee is expected remain in a range of 74.60 to 75.20 with flows from IPOs getting absorbed by oil buying/RBI, he said.

“Euro and GBP unable to move up against the dollar and now markets awaiting Fed comments on Wednesday. Importers are likely to buy near 74.80 fearing a hawkish Fed and bullish oil, while exporters may sell for the near term above 75.00 levels,” he noted.



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Rupee, government bonds gain as mkts cheer sharp decline in CPI inflation, BFSI News, ET BFSI

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NEW DELHI: The rupee gained against the US dollar in early trade Wednesday because of a sharp decline in Consumer Price Index-based inflation for September and as global crude oil prices retreated from multi-year highs, dealers said.

The domestic currency on Wednesday opened at 75.3150 to a dollar, stronger than 75.5060 per dollar on Tuesday. At 10:20 hours (IST), the local unit traded at 75.2675 per dollar.

Data released after trading hours on Tuesday showed that India’s headline retail inflation declined sharply to 4.35 per cent in September versus 5.30 per cent in August.

While domestic retail inflation has been softening over the past couple of months, a recent jump in global crude oil prices had led to fears of fresh upside risks to inflation.

Crude oil prices have climbed to multi-year highs since last week due to concerns of global demand outstripping supply.

Comfortingly for local currency traders, Brent crude futures declined on Tuesday, with the contract for December delivery shedding $0.23 to close at $83.42 per barrel.

“There is a pull-back in crude oil prices which is providing support but the larger positive is the sharp decline in inflation,” a dealer with a large private bank said on condition of anonymity.

“After the kind of depreciation we have seen this month, there is also some dollar selling by foreign banks for exporters. Because they want to lock in a good level. 75.50/$1 was breached yesterday but it is unlikely that RBI will let it go to 76/$1 very soon,” he said.

The rupee has shed around 1.5 per cent against the US dollar so far this month.

Government bonds also gained with yield on the 10-year benchmark 6.10%, 2031 paper last at 6.31%, two basis points lower than previous close, as traders welcomed the inflation print for September.

Bond prices and yields move inversely.

With the fall in headline retail inflation last month providing breathing room to the RBI, bond dealers believe that the central bank may not be in a rush to commence raising interest rates.

“After the last policy statement (on Friday), there was a lot of talk about how the reverse repo rate will be raised in December, I think RBI could stretch it out till February, given that inflation so far is behaving itself. The only joker in the pack is oil prices,” a dealer with a large foreign bank said on condition of anonymity.



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Rupee slumps 26 paise to close at 73.74 against US dollar, BFSI News, ET BFSI

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MUMBAI: The Indian rupee fell by 26 paise to close at 73.74 (provisional) against the US dollar on Monday, tracking a strong American currency in the overseas market and muted trend in domestic equities.

At the interbank foreign exchange market, the local currency opened at 73.82 and finally settled for the day at 73.74 a dollar, down 26 paise over its previous close.

In the previous session on Friday, the rupee had settled at 73.48 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.27 per cent higher at 93.44.

“The Indian rupee started the week on back foot as markets are in a risk-averse mood, triggered by the worries over the Chinese property developer Evergrande’s debt crisis,” said Dilip Parmar, Research Analyst, HDFC Securities.

“Volatility buyers are active in the forex markets as this week will witness fourteen central banks, apart from crucial FOMC, rate decisions and elections in Canada and Germany,” Parmar said.

The INR/USD pair is expected to find resistance around 74 while hold support at 73.40, he noted.

Brent crude futures, the global oil benchmark, fell 1.79 per cent to USD 73.99 per barrel.

On the domestic equity market front, the BSE Sensex ended 524.96 points or 0.89 per cent lower at 58,490.93, while the broader NSE Nifty declined 188.25 points or 1.07 per cent to 17,396.90.

Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 1,552.59 crore, as per exchange data.



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Rupee inches 4 paise higher to 73.25 against US dollar, BFSI News, ET BFSI

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MUMBAI: The Indian rupee appreciated 4 paise to 73.25 against the US dollar in opening trade on Tuesday, tracking a positive trend in domestic equities.

At the interbank foreign exchange, the rupee opened at 73.26 against the dollar, then inched higher to 73.25, up 4 paise over its previous close.

On Monday, the rupee had settled at 73.29 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.12 per cent at 92.54.

A strong rally in the domestic equity markets and a weak American currency in the overseas markets also supported the rupee sentiment.

According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the rupee which has appreciated nearly 100 paise since Friday, has been gaining on bountiful corporate inflows.

“RBI has been present intermittently and equity inflows have also been aiding the rupee after FED rhetoric on Friday,” he added.

The US Fed chief Jerome Powell’s speech at Jackson Hole Symposium was ‘dovish’ and expressed hope that the Fed will keep supporting the market with low interest rates, traders said.

Global oil benchmark Brent crude futures fell 0.48 per cent to USD 73.06 per barrel.

On the domestic equity market front, BSE Sensex was trading 87.09 points or 0.15 per cent higher at 56,976.85, while the broader NSE Nifty advanced 21.55 points or 0.13 per cent to 16,952.60.

Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 1,202.81 crore, as per exchange data.



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Rupee slips by 2 paise to close at 74.20 against US dollar, BFSI News, ET BFSI

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MUMBAI: The rupee weakened by 2 paise to end at 74.20 (provisional) against the US dollar on Friday as higher crude oil prices weighed on forex market sentiment.

At the interbank foreign exchange market, the rupee opened at 74.15 per dollar as against its previous close of 74.18.

It hovered in the range of 74.14 to 74.25 during the day before ending at 74.20 against the greenback.

“The Indian rupee remained under pressure on Friday on firm crude oil prices and as market participants remained vigilant ahead of US Core PCE Price Index data,” Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08 per cent to 91.74.

“Dollar is showing weakness amid Fed officials differing view on how long inflation is likely to stay high and when to tighten monetary policy. Market Sentiments improved on news that US President Joe Biden and a group of senators agreed on roughly USD 1 trillion infrastructure plan securing bipartisan deal,” he noted

The rupee may gain as number of COVID-19 cases in India continued to decline. Rupee may trade in the range of 73.55 to 74.50 in next couple of sessions, he added.

On the domestic equity market front, the BSE Sensex ended 226.04 points or 0.43 per cent higher at 52,925.04, while the broader NSE Nifty rose 72.55 points or 0.46 per cent to 15,863.00.

Brent crude futures, the global oil benchmark, declined 0.34 per cent to USD 75.30 per barrel.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 2,890.94 crore, as per exchange data.



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