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Rupee Posts 8 Paise Up To 81.60 Against USD Led By Foreign Capital Inflows

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In the previous session on 28 November, the rupee surged 3 paise to end at 81.68 against the dollar. Brent crude futures being the global oil benchmark, rose 1.39 per cent to USD 84.35 per barrel. The dollar index slipped 0.38 per cent to 106.28. It measures the greenback’s strength against a basket of six currencies

The rupee went 8 paise up to 81.60 against the US dollar during early trade on 29 November. This is followed by boosted investor sentiments due to foreign capital inflows and a firm trend in the domestic equity market.

According to the forex dealers, apart from this, a weak American currency in the overseas market helped the domestic unit.

The local unit opened strong at 81.58 against the dollar. However, later it inched lower to quote at 81.60 which registered a rise of 8 paise from its previous close, at the interbank foreign exchange.

In the previous session on 28 November, the rupee surged 3 paise to end at 81.68 against the dollar.

The dollar index slipped 0.38 per cent to 106.28. It measures the greenback’s strength against a basket of six currencies.

Brent crude futures being the global oil benchmark, rose 1.39 per cent to USD 84.35 per barrel.

The 30-share BSE Sensex was traded 164.06 points or 0.26 per cent higher at 62,668.86. On the similar lines, the broader NSE Nifty went up 59.10 points or 0.32 per cent to 18,621.85, in the domestic equity market.

Foreign Institutional Investors (FIIs) sold shares worth Rs 935.88 crore, which made them net sellers in the capital markets on 28 November, revealed the exchange data.

Also, on 28 November, S&P Global Ratings reduced the economic growth forecast of INdna for the current fiscal year to 7 per cent. It, however said that the domestic demand-led economy will be less impacted by the global slowdown.

rupee

Rupee Went 16 Paise Up To 81.54 Against USD During Early Trade

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The rupee went up by 23 paise and closed at 81.70 against the US dollar, on 24 November. The global oil benchmark, Brent crude futures too grew 0.20 per cent to USD 85.51 per barrel

The rupee improved 16 paise to 81.54 against the US dollar during early trade on 25 November. This is after the weakness witnessed in the broad dollar weakness along with its Asian peers.

The domestic unit opened at 81.69 against the dollar, at the interbank foreign exchange. Later it reached 81.54. which registered a surge of 16 paise over its previous close.

The rupee went up by 23 paise and closed at 81.70 against the US dollar, on 24 November.

According to experts, the American currency has softened from its elevated levels considering Federal Open Market Committee (FOMC) minutes.

The dollar index, went 0.23 per cent down to 105.82. It measures the greenback’s strength against a basket of six currencies.

Apart from this development, investors’ sentiment is also aided by steady crude oil price.

The global oil benchmark, Brent crude futures too grew 0.20 per cent to USD 85.51 per barrel.

The 30-share BSE Sensex was traded at 39.89 points or 0.06 per cent lower at 62,232.79. On similar lines, the broader NSE Nifty fell 12.65 points or 0.07 per cent to 18,471.45, in the domestic equity market.

Foreign Institutional Investors (FIIs) purchased shares worth Rs 1,231.98 crore, which made them net buyers in the capital markets on 24 November, according to exchange data.

rupee

Indian Importers Should Use Rupee’s Recovery To Provision Liabilities: Analysts

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The rupee went up at 82.3250 per U.S. dollar as compared to 82.7250 in the previous session and from being the record low by reaching 83.29 last week. It had opened at 82.15. India’s high trade deficit, oil prices threat and capital flow challenges conclude that the outlook for the rupee still remains weak, said analyst. The expectations of U.S. Federal Reserve to deliver comparatively smaller rate hikes post November contributed towards rupee’s recovery from record lows

Analysts said that Indian importers should take benefit of rupee recovery against the dollar in order to provision their liabilities due this year, reported a median house in on 27 October.

The rupee went up at 82.3250 per U.S. dollar as compared to 82.7250 in the previous session and from being the record low by reaching 83.29 last week. It had opened at 82.15.

It may be favourable for importers to use this dip (in USD/INR pair) and hike the proportion of their hedges according to a banking analyst.

An advice to at least record a major portion of the liabilities due till December was given by the analyst.

India’s high trade deficit, oil prices threat and capital flow challenges conclude that the outlook for the rupee still remains weak, he added in the report.

The expectations of U.S. Federal Reserve to deliver comparatively smaller rate hikes post November contributed towards rupee’s recovery from record lows.

However, the situation still remains unclear as the Fed may increase rates by 75 bps in coming week. The next two inflation readings will decide whether the U.S. central bank goes for a smaller rate hike in December or not, as per the analyst.

For the rupee to recover, there still remains enough uncertainty on the Fed side, the analyst added.