On the domestic macroeconomic front, retail inflation in March fell to a 15-month low of 5.66 per cent and came back to the Reserve Bank's comfort level of 6 per cent. The broader NSE Nifty declined 1.05 points or 0.01 per cent to 17,811.35.įoreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they purchased shares worth ₹1,907.95 crore, according to exchange data. In the domestic equity market, the 30-share BSE Sensex declined 43.95 points or 0.07 per cent to 60,348.82. "Brent has risen to USD 87.25 per barrel as weak US CPI could mean that the Fed could sound less hawkish," IFA Global Research Academy said in a research note. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 101.55.īrent crude futures, the global oil benchmark, declined 0.22 per cent to USD 87.14 per barrel. Adding to it, the ongoing geopolitical concerns and Fed's hiking process are likely to weigh on investor sentiment and the USDINR could bounce back to 82.50-82.80 levels," CR Forex Advisors MD-Amit Pabari said. "Overall USDINR has strong support around 81.75-80 levels, as the RBI is intervening to protect from steep appreciation. On Wednesday, the rupee closed at 82.11 against the US currency. Indian rupee notes (Representative Image)(AFP)įorex traders said foreign fund inflows also supported the local unit.Īt the interbank foreign exchange, the domestic unit opened at 81.99 against the dollar, then climbed to 81.93, registering a rise of 18 paise over its previous close. If the 80 mark is taken out convincingly, the panic button could get triggered and 81.00 to 81.50 levels will remain on the cards.The rupee gained 18 paise to 81.93 against the US dollar in early trade on Thursday tracking the broad weakness of the American currency in the overseas market. The intraday price action movement clearly signifies that there is a heavy demand for the dollar pushing the USDINR pair on the upside. So far the Bank has offloaded over $50 billion in reserves but as the global sentiments are negative, it hasn’t helped the rupee more than slowing down the depreciation pace. “USDINR has been trading between 80-80.25 levels in NDF in the past few sessions and in onshore the RBI seems to be protecting the breach above 80 levels. We expect the USDINR(Spot) to trade with a positive bias and quote in the range of 79.70 and 80.40.” Amit Pabari, MD, CR Forex Advisors Better-than-expected economic data could extend gains for the dollar. Apart from ECB policy statement, focus will also be on the Philly Fed Manufacturing Index that will be released from the US. Market participants remain cautious ahead of the important ECB policy statement that will be released today. “Rupee consolidated in a narrow range for the whole of the session but was weighed down in the latter hour of the session following broad strength in the dollar against its major crosses. NSE warns investors against entities running dabba trading activities Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services We could see a range of 79.60 and 80.40 on spot.” Over the near term, we expect USDINR to trade with an upward bias, driven by fragile global risk sentiments. Demand for USD from oil marketing companies and weakness in Yuan added to the demand for USDINR. “USDINR spot closed 5 paise higher at 79.99, high of the day. Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd At the interbank foreign exchange market, the local unit opened at 79.91 and later slid to a close at a low of 80.05 to a dollar, down 13 paise from its previous close. In the previous session, rupee declined to close below the 80 mark for the first time against the US dollar due to strong dollar demand from importers amid high crude oil prices. USDINR(Spot) is expected to trade with a positive bias and quote in the range of 79.70 and 80.40. However, losses may be capped by falling crude prices, FII selling slowdown and positive equity markets, according to analysts. The Indian Rupee is likely to depreciate on strong dollar, fragile risk sentiments in global markets.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |