Tag: rupee rate

  • Rupee Depreciates To Fresh Low, Leaning Towards 84 Over Global Market Concern | Economy News

    The Indian rupee depreciated versus the US dollar on Monday to touch its all-time low, tracking global heavy selling in stock markets, over risks that the US may potentially slip into recession. At 12.18 pm, at the time of filing this report, the Rupee traded at 83.85 versus Friday’s closing of 83.75. It opened at 83.78, surpassing the previous lifetime low of 83.7525 from Friday. Analysts say that the Rupee’s fall is in line with the weakness in the global market, US recession fears, and add to it geopolitical tensions.

    “US recession concerns led to worries about foreign outflows from India and emerging markets,” said Mumbai-based Ajay Kedia of financial services firm Kedia Advisory. “The fall is attributed to concerns over a potential US recession, which has spurred worries about foreign outflows from India and other emerging markets. The selloff in US and Asian equities, following a disappointing US jobs report, has intensified these concerns, causing significant market jitters,” Kedia said in a report.

    The weak US jobs report released on Friday showed that the economy added only 114,000 jobs in July, significantly below market expectations of a 175,000 increase. Additionally, the unemployment rate unexpectedly jumped to a high of 4.3 per cent, and wage growth slowed more than anticipated.

    Kedia said the Reserve Bank of India might allow USD/INR to move higher to 83.90. He sees support at 83.45, and resistance at 83.95; and breaking 83.95 could push it to 84.10/84.20. Jamal Mecklai, a veteran in the financial market, said, “US recession fears, equity market collapse would create a risk-off sentiment. Equity decline could be quite serious and could last for a long time. So the rupee will naturally take some pressure. .”

    In 2022-23, the Indian Rupee was in the news cycle for a considerable part, though not for good reasons. Monetary policy tightening by various central banks to contain inflation, the war in Ukraine leading to price rise for crude oil and subsequent realignment in the global energy supply chain, and strengthening of the US dollar index kept the Indian currency under pressure.

    Since then, the rupee has been off the news cycle, as it traded largely steady months thereafter. In 2022, the Rupee depreciated over 11 per cent on a cumulative basis, data showed. It breached the 83-mark against the US dollar in mid-October, to hit an all-time low.

    RBI’s possible intervention in the forex market to stabilize the rupee seemed to have yielded results. Typically, the RBI from time to time intervenes in the markets through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

    The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

  • Rupee rises 6 paise to 79.76 towards US greenback in early commerce

    The rupee appreciated 6 paise to 79.76 towards the US greenback in early commerce on Monday as a optimistic pattern in home equities supported the native unit.

    However, a robust American forex abroad and foreign exchange outflows restricted the rupee’s achieve, sellers mentioned.

    At the interbank overseas change, the rupee opened at 79.76 towards the American greenback, registering a achieve of 6 paise during the last shut.

    In preliminary offers, the native unit witnessed an early excessive of 79.72 and low of 79.81 towards the American forex.

    The rupee on Friday rebounded from the near-80 ranges to shut increased by 17 paise at 79.82 towards the US forex.

    “RBI may protect the level of 80 for some more time before it can allow a break of the same. The trade deficit is very high for the rupee to sustain while importers/ debt companies will keep buying dollars to pay off their payables,” mentioned Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

    Bhansali additional mentioned,”flows haven’t resumed and FPIs are nonetheless sellers within the inventory market, although the depth has come down. India might probably be the best development nation amongst the big-sized markets and with good rainfall, demand could possibly be adequate. RBI might hike charges of curiosity to draw flows however let development proceed.” On the home fairness entrance, the 30-share Sensex was buying and selling 381.25 factors or 0.71 per cent increased at 54,142.03, whereas the broader NSE Nifty superior 136.35 factors or 0.85 per cent to 16,185.55.

    Meanwhile, the greenback index, which gauges the dollar’s energy towards a basket of six currencies, fell 0.26 per cent to 107.77.

    Global oil benchmark Brent crude futures rose 0.71 per cent to USD 101.88 per barrel.

    Foreign institutional traders remained internet sellers within the capital market on Friday, offloading shares price Rs 1,649.36 crore, as per change knowledge.

  • Rupee nearly flat towards US greenback in early commerce

    The rupee began the session on a flat observe towards the US greenback on Wednesday amid a rally within the fairness markets and easing retail inflation.

    A powerful buck towards main currencies and overseas capital outflows saved buyers cautious in early buying and selling, foreign exchange sellers stated.

    At the interbank overseas change, the rupee opened sturdy at 79.55 towards the American greenback, then turned risky to commerce in a decent vary of 79.53 to 79.60. The home unit was buying and selling at 79.58 towards the buck in early offers, registering a acquire of simply 1 paisa over the past shut.

    In the earlier session, the rupee had closed at an all-time low of 79.59 towards the buck.

    On the home fairness entrance, the 30-share Sensex was buying and selling 206.14 factors or 0.38 per cent greater at 54,092.75, whereas the broader NSE Nifty rose 61.65 factors or 0.38 per cent to 16,119.95.

    Meanwhile, the greenback index, which gauges the buck’s power towards a basket of six currencies, gained 0.12 per cent to 108.20.

    Global oil benchmark Brent crude futures rose 0.29 per cent to USD 99.78 per barrel.

    Retail inflation eased barely to 7.01 per cent in June however was above the central financial institution’s tolerance band for the sixth month in a row, signalling extra rate of interest hikes in future. Retail inflation in May was 7.04 per cent, authorities information launched on Tuesday confirmed.

    Foreign institutional buyers remained web sellers within the capital market on Tuesday, offloading shares price Rs 1,565.68 crore, as per change information.

    Factory output development strengthened to a 12-month excessive of 19.6 per cent in May from 6.7 per cent within the earlier month.

    With client worth index primarily based inflation remaining excessive, Finance Minister Nirmala Sitharaman on Tuesday stated the federal government is watchful of the worth state of affairs and can proceed the pointed assault on inflation.

  • Rupee opens on flat word, inches larger by 4 paise to 72.73 towards US greenback in early commerce

    The Indian rupee opened on a flat word and edged larger by 4 paise to 72.73 towards the US greenback in early commerce on Thursday monitoring muted constructive home equities.
    At the interbank international trade, the home unit opened at 72.75 towards the greenback, then inched larger to 72.73, registering a acquire of 4 paise over its earlier shut.
    On Wednesday, the rupee had settled at 72.77 towards the US greenback.

    “Most Asian currencies have started mostly weak against the US dollar this morning and will await data,” Reliance Securities stated in a analysis word.
    Meanwhile, the greenback index, which gauges the dollar’s power towards a basket of six currencies, rose 0.01 per cent to 90.05.
    “The US Dollar Index has started on a flat note in Asian trade as emerging views the Federal Reserve is slowly but surely edging towards a discussion about tightening monetary policy, and as traders await crucial US inflation data this week,” the word added.
    Global oil benchmark Brent crude futures fell 0.65 per cent to USD 68.42 per barrel.
    On the home fairness market entrance, BSE Sensex was buying and selling 6.99 factors or 0.01 per cent larger at 51,024.51, whereas the broader NSE Nifty superior 12.70 factors or 0.08 per cent to fifteen,314.15.

    Foreign institutional traders had been web consumers within the capital market on Wednesday as they bought shares price Rs 241.60 crore, as per trade knowledge.
    Meanwhile, India’s COVID-19 an infection tally climbed to 2,73,69,093 as 2,11,298 extra folks examined constructive for the illness in a day, whereas the nation’s restoration was recorded at 90 per cent, in accordance with the Union Health Ministry on Thursday.

  • Rupee slumps 52 paise to 74.87 towards US greenback in early commerce

    The Indian rupee slumped 52 paise to 74.87 towards the US greenback in opening commerce on Monday, amid fears {that a} fast resurgence of COVID-19 circumstances within the nation may disrupt financial restoration.
    Besides, heavy selloff in home equities additionally weighed on investor sentiment.
    At the interbank foreign exchange market, the home unit opened at 74.80 towards the US greenback, then fell additional to 74.87, registering a fall of 52 paise over its earlier shut.

    On Friday, the rupee had settled at 74.35 towards the American forex.
    The Indian rupee began on a weaker word towards the US greenback after one other surge in coronavirus infections over the weekend elevated the chance of extra broadbased lockdowns, Reliance Securities stated in a analysis word.
    India’s complete tally of COVID-19 circumstances crossed 1.50 crore with a document single-day rise of two,73,810 new coronavirus infections, whereas the energetic circumstances surpassed the 19-lakh mark, based on the Union Health Ministry knowledge up to date on Monday.
    Registering a gradual improve for the fortieth day in a row, the energetic circumstances have elevated to 19,29,329 comprising 12.81 per cent of the whole infections, whereas the nationwide COVID-19 restoration fee has dropped to 86 per cent.
    Meanwhile, Asian currencies have been principally weaker this Monday and will weigh on sentiments, the Reliance Securities’ word stated including that “the RBI could be present to curb volatility”.
    In the home fairness market, the 30-share BSE benchmark Sensex was buying and selling 1,189.83 factors decrease at 47,642.20, and the broader NSE Nifty was down 340.60 factors at 14,277.25.
    Foreign institutional buyers have been internet consumers within the capital market as they bought shares price Rs 437.51 crore on Friday, based on trade knowledge.

    Meanwhile, the greenback index, which gauges the buck’s power towards a basket of six currencies, rose 0.10 per cent to 91.64.
    Brent crude futures, the worldwide oil benchmark, fell 0.37 per cent to USD 66.52 per barrel.