The Indian rupee depreciated by 11 paise to 74.16 against the US dollar in opening trade on Wednesday, tracking a lacklustre trend in the domestic equity market and firm American dollar.
At the interbank foreign exchange, the rupee opened on a weak note at 74.11, then fell further to 74.16, registering a decline of 11 paise from the last close.
On Tuesday, the rupee had closed at 74.05 against the US dollar.
Dollar index
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.08 per cent to 94.03.
“As the inflows in the two IPOs getting subscribed are tepid, the dollar rupee was bought yesterday from 73.86. Today, there could be outflows of Nykaa and may be some inflows of Paytm,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
Bhansali further said that “importers to keep buying near to 74.00 and below. Exporters will wait for 74.40 and 74.50 before they begin to sell.” Global oil benchmark Brent crude futures advanced 0.29 per cent to $85.03 per barrel.
Moreover, foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹2,445.25 crore, as per exchange data.
On the domestic equity market front, the 30-share Sensex was trading 286.21 points or 0.47 per cent lower at 60,147.24, while the broader NSE Nifty declined 84.40 points or 0.47 per cent to 17,959.85.
The rupee surged 27 paise to 74.19 against the US dollar in opening trade on Monday supported by dovish central banks.
At the interbank foreign exchange, the rupee opened strong at 74.25 against the dollar and gained further ground to 74.19 in early deals, a rise of 27 paise over its previous close.
On Thursday, the rupee had settled at 74.46 against the US dollar.
The forex market was closed on Friday for ‘Diwali Balipratipada’.
The Indian Rupee opened stronger this Monday supported by dovish central banks, Reliance Securities said in a research note.
Fed’s taper announcement
Fed Chair Jerome Powell said he was in no rush to hike borrowing costs, as there was still ground to cover to reach maximum employment. The central bank did announce a $15 billion monthly tapering of its $120 billion in monthly asset purchases.
Additionally, flows into the market could also lend support. However, the Reserve Bank of India’s presence could cap the appreciation bias, the note said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.01 per cent to 94.31.
Global oil benchmark Brent crude futures rose 1.02 per cent to $83.58 per barrel.
On the domestic equity market front, BSE Sensex was trading 221.26 points or 0.37 per cent lower at 59,846.36, while the broader NSE Nifty declined 56.75 points or 0.32 per cent to 17,860.05.
Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth ₹328.11 crore, as per exchange data.
Mumbai, Nov 2 : The rupee gained 19 paise to close at 74.68 (provisional) against the US dollar on Tuesday, as IPO related inflows supported the local unit amid a lacklustre trend in the domestic equity market. At the interbank forex market, the domestic unit opened at 74.83 against the greenback and witnessed an intra-day high of 74.66 and a low of 74.86 during the day’s trade. It finally ended at 74.68 a dollar.
On Monday, the rupee had settled at 74.87 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.06 per cent to 93.94.
“After two days of lacklustre movements, the rupee has appreciated quarter percentage points backed by inflows from IPOs. While overseas markets traded sideways ahead of the US Fed and Bank of England policy meeting this week,” said Dilip Parmar, Research Analyst, HDFC Securities.
Dollar supply remained high on the back of IPOs, while traders may remain light in holiday truncated weeks, Parmar said, adding “Spot USD/INR is expected to trade in a tight range of 74.50 to 75”.
On the domestic equity market front, the BSE Sensex fell 109.40 points or 1.18 per cent to end at 60,029.06, while the broader NSE Nifty declined 40.70 points or 0.23 per cent to 17,888.95.
Brent crude futures, the global oil benchmark, rose 0.27 per cent to USD 84.94 per barrel.
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.
Mumbai, Reserve Bank of India (RBI) remained a net buyer of the US currency in August after it net purchased USD 3.747 billion from the spot market. In the reporting month, RBI had purchased USD 10.887 billion and sold USD 7.14 billion in the spot market, according to the monthly RBI bulletin for October 2021 released on Monday.
In July, RBI net purchased USD 7.205 billion. It had bought USD 16.16 billion and sold USD 8.955 billion during the month. In August 2020, the central bank had net bought USD 5.307 billion from the spot market, the data showed.
During FY 2020-21, RBI had net purchased USD 68.315 billion from the spot market. It had bought USD 162.479 billion from the spot market and sold USD 94.164 billion during 2020-21, the data showed.
In the forward dollar market, the outstanding net purchase at the end of August was USD 49.606 billion compared with a net purchase of USD 49.01 billion in July. PTI HV RAM
NEW YORK -The dollar edged lower against a basket of major currencies on Friday, on track to end its five-week winning streak, as global risk appetite rebounded, helping reduce demand for the safe-haven currency.
Global stock markets have rallied this week as fears about a stagflationary economy have been eased by forecast-beating corporate earnings in the United States.
Unexpectedly strong U.S. retail sales data for September also boosted sentiment. Retail sales rose 0.7% last month, versus expectations of a 0.2% decline, helped in part by higher prices.
“The risk appetite here remains really, really strong for the time being,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management.
“That’s helping the high beta currencies like the pound, the euro and the Aussie, simply because the market is feeling much more positive,” he said.
The dollar index initially firmed after the retail sales data, but then trended lower and was last down 0.106% at 93.941. The greenback was down 0.19% for the week, after having appreciated for the previous five weeks, and hitting a one-year high of 94.563 on Tuesday.
The big run-up in dollar strength, based on expectations that the U.S. Federal Reserve may begin hiking rates sooner than had been anticipated, may have been overblown, and the dollar is now consolidating, said Marc Chandler, chief market strategist at Bannockburn Global Forex.
“Next week will help clarify whether we are consolidating, and whether the consolidation is just like a breath that refreshes or is a prelude for a correction,” he said.
The greenback had rallied against its major peers since early September on expectations the U.S. central bank would tighten monetary policy more quickly than previously expected amid an improving economy and surging energy prices.
Minutes of the Fed’s September meeting confirmed this week that a tapering of stimulus is all but certain to start this year, although policymakers are sharply divided over inflation and what they should do about it.
Money markets are currently pricing in about 50/50 odds of a 25 basis point rate hike by July.
Sterling rose 0.57% to $1.3765, hitting its highest since Sept. 17, while the euro edged down 0.03% to $1.1595 after touching $1.1624 on Thursday for the first time since Sept. 4.
The risk-sensitive Aussie dollar added 0.02% to $0.7417, having climbed to $0.7439 earlier in the session. New Zealand’s dollar jumped 0.54% to $0.7068, extending Thursday’s 1% surge.
The Japanese yen was the biggest loser, dropping to as low as 114.46 yen per dollar, its weakest since October 2018. The yen is a safe-haven currency and has been knocked by the rebound in risk sentiment including in Asia. The dollar was last up 0.53% against the yen at 114.28 yen.
In cryptocurrency markets, the price of bitcoin topped $60,000 for the first time in six months and was not far from its record high on bets U.S. regulators will approve a bitcoin futures exchange traded fund.
During the reporting week ended October 8, the rise in the reserves was on account of an increase in the Foreign Currency Assets (FCAs), Reserve Bank of India’s (RBI) weekly data released on Friday showed.
The Indian rupee appreciated 12 paise to 75.25 against the US dollar in opening trade on Thursday, buoyed by heavy buying in domestic equities and fresh foreign fund inflows.
Weakness of the American currency in the overseas market also helped the domestic unit, forex dealers said.
However, higher crude prices restrained the rupee to gain momentum, they added.
At the interbank foreign exchange, the domestic unit opened strong at 75.27 against the US dollar, then gained further ground to 75.25, registering a rise of 12 paise against the previous close.
In initial deals, the rupee was trading in a tight range of 75.25 and 75.27 with a positive bias against the greenback.
The domestic had settled at 75.37 against the US currency on Wednesday.
Domestic equities
On the domestic equity market front, the BSE Sensex was trading 327.18 points or 0.54 per cent higher at 61,064.23, while the broader NSE Nifty surged 114.05 points or 0.63 per cent to 18,275.80.
Foreign institutional investors emerged as net buyers in the capital market on Wednesday, as they purchased shares worth ₹937.31 crore, as per exchange data.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.03 per cent to 94.05.
Global oil benchmark Brent crude futures rose 0.70 per cent to $83.76 per barrel.
The rupee tumbled by 37 paise on Monday to hit the lowest level in about 15 months as oil marketing companies stepped up dollar purchases through banks in the wake of sharp uptick in Brent crude oil price and the greenback gaining strength.
The rupee closed at 75.36 to the US Dollar against the previous close of 74.99.
The Indian currency opened weaker at 75.11 per dollar. In intra-day trading, it saw a high and a low of 75.06 and 75.3950, respectively.
Crude oil price hike
Brent crude oil price rose almost 2 per cent to cross $84 a barrel.
A combination of factors, including banks’ buying dollar on behalf of oil marketing companies, which probably expect crude oil to become more pricey and are mopping up dollars before it hardens further, and foreign institutional investors, who are liquidating some of their bond market positions before the ripple effect of the China’s bond market slump is felt in emerging market economies, including India, pulling down the rupee, said a chief dealer with a private sector bank.
Brent crude oil could touch $90 per barrel as a global energy crisis looms and this could weaken the rupee further, cautioned the dealer.
The Indian rupee depreciated 17 paise to 75.16 against the US dollar in opening trade on Monday, as rising crude prices and strength of the American currency in the overseas market weighed on investor sentiments.
At the interbank foreign exchange, the rupee opened on a weak note at 75.11, then fell further to 75.16, registering a decline of 17 paise from the last close.
On Friday, the rupee had settled at 74.99 against the US dollar.
Dollar index
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08 per cent to 94.13.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, “with oil above $82 and US yields higher, USD/INR may come down to a maximum of 74.80 where importers may hedge their near-term payable, while exporters may sit quite with a stop loss of 74.75.” Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth ₹64.01 crore, as per exchange data.
On the domestic equity market front, the 30-share Sensex was trading 214.43 points or 0.36 per cent higher at 60,273.49, while the broader NSE Nifty was trading 74.80 points or 0.42 per cent higher at 17,970.
Global oil benchmark Brent crude futures advanced 1.43 per cent to $83.57 per barrel.
Meanwhile, the 13th round of military talks between India and China did not produce any resolution of the remaining issues in eastern Ladakh, the Indian Army said on Monday a day after the dialogue.
It said the Indian side made “constructive suggestions” for resolving the remaining areas but the Chinese side was not agreeable to them and also could not provide any forward-looking proposals.
The Indian rupee depreciated 17 paise to 75.16 against the US dollar in opening trade on Monday, as rising crude prices and strength of the American currency in the overseas market weighed on investor sentiments.
At the interbank foreign exchange, the rupee opened on a weak note at 75.11, then fell further to 75.16, registering a decline of 17 paise from the last close.
On Friday, the rupee had settled at 74.99 against the US dollar.
Dollar index
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08 per cent to 94.13.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, “with oil above $82 and US yields higher, USD/INR may come down to a maximum of 74.80 where importers may hedge their near-term payable, while exporters may sit quite with a stop loss of 74.75.” Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth ₹64.01 crore, as per exchange data.
On the domestic equity market front, the 30-share Sensex was trading 214.43 points or 0.36 per cent higher at 60,273.49, while the broader NSE Nifty was trading 74.80 points or 0.42 per cent higher at 17,970.
Global oil benchmark Brent crude futures advanced 1.43 per cent to $83.57 per barrel.
Meanwhile, the 13th round of military talks between India and China did not produce any resolution of the remaining issues in eastern Ladakh, the Indian Army said on Monday a day after the dialogue.
It said the Indian side made “constructive suggestions” for resolving the remaining areas but the Chinese side was not agreeable to them and also could not provide any forward-looking proposals.
The rupee fell by 8 paise to close at 74.14 against the US dollar on Wednesday amid a lacklustre trend in domestic equities and strengthening of the American currency in the overseas market.
At the interbank foreign exchange market, the local currency opened at 74.18 and witnessed an intra-day high of 74.08 and a low of 74.26 against the US dollar in day trade.
The local unit finally settled at 74.14 a dollar, down 8 paise over its previous close. On Tuesday, the rupee had settled at 74.06 against the greenback.
“The Indian rupee depreciated amid strong dollar and muted domestic markets. Dollar gained strength on the back of a surge in US treasury yields. Yields are rising on expectation that the US Federal Reserve will start tapering its bond purchases before the end of the year and possibly begin raising interest rates next year,” said Raj Deepak Singh, Head-Derivatives – ICICI Securities.
A jump in commodity prices has also fuelled worries over short-term inflation pressures.
Furthermore, investors remained vigilant ahead of speeches of major central banks to get hints on their future monetary stance.
“Sharp downside was prevented on persistent FII inflows and as crude oil dipped from its high. Rupee may trade in the range of 73.90 to 74.40 in the next couple of sessions,” Singh noted.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent higher at 93.82. Meanwhile, Brent crude futures, the global oil benchmark, declined 0.61 per cent to $78.61 per barrel.
On the domestic equity market front, the BSE Sensex ended 254.33 points or 0.43 per cent lower at 59,413.27, while the broader NSE Nifty declined 37.30 points or 0.21 per cent lower at 17,711.30.
Meanwhile, foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 1,957.70 crore, as per exchange data.
