Rupee Vs Dollar: The domestic currency fell by 9 rates against the US dollar
Money Market Update: The rupee fell 9 paise to close at 83.63 against the US currency, weighed down by muted trends in domestic equities and higher crude oil prices. The rupee opened higher on Tuesday as domestic equities touched new record highs. However, the rupee lost early gains and closed in the red in line with domestic equity markets that remained in the wrong zone.
Forex dealers said rising crude oil prices weighed on the rupee, while the US dollar fell as China announced new stimulus to boost its economy.
In the foreign exchange market, the local unit opened at 83.54 against the US dollar and finally settled at 83.63 against the US dollar, down 9 points from its previous close.
On Monday, the rupee pared its early gains to close 2 paise lower at 83.54 against the US currency.
“We expect the rupee to trade on a positive bias amid improving global risk appetite following stimulus and a softening of the Chinese dollar. However, higher prices of crude oil and other commodities may weigh heavily,” said Anuj Choudhary — Research Analyst at Sharekhan. by BNP Paribas.
Choudhury went on to say that traders may take cues from US CB consumer confidence data and statements by members of the Federal Open Market Committee (FOMC). “The spot price of USDINR is expected to trade in the range of Rs 83.45 to Rs 83.85,” he said.
“The rupee fell against the dollar on normal dollar payments by importers. Meanwhile, forward payments continued to hold multi-month highs after Federal Reserve officials led the rupee to remain weak. Muted trends in domestic stocks and rising crude oil prices. also led to weakness,” said Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers.
On the domestic market front, the Sensex fell 14.57 points, or 0.02 percent, to settle at 84,914 points, while the Nifty gained 1.35 points, or 0.01 percent, to close at 25,940.40 points.
The dollar index, which measures the greenback’s strength against a basket of six currencies, fell slightly by 0.05 percent to 100.79.
Brent crude, the international benchmark, rose 2.42 percent to 75.69 in futures trading.
Foreign Institutional Investors (FIIs) were the biggest sellers in the capital markets on Tuesday, offloading shares worth Rs 2,784.14 crore, according to exchange data.
Meanwhile, S&P Global Ratings on Tuesday kept India’s growth forecast at 6.8 percent for the current fiscal year and said it expects the Reserve Bank of India (RBI) to start cutting interest rates in its October monetary policy review.
In the Asia Pacific economic outlook, S&P Global Ratings also maintained its GDP growth forecast for the fiscal year 2025-26 at 6.9 percent and said that strong growth in India will allow the RBI to focus on bringing inflation in line with its target. .
