In today’s opening session, the rupee was following a downward trend in domestic equities and dismal domestic macroeconomic data while trading in a small range against the US dollar. In early trade on Thursday, the rupee was following a muted trend in domestic equities and dismal domestic macroeconomic data while trading in a small range against the US dollar.
The rupee traded range-bound in the early dealings at the interbank foreign exchange. It started at 82.30 versus the US dollar before rising to 82.29, gaining 4 paise from the previous close. In the early trade, it was trading in a narrow range between 82.25 and 82.34.
Rupee trends according to Sriram Iyer:
The rupee lost 12 paise on Wednesday to end the day at 82.33 against the US dollar. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee opened the day with modest gains ahead of US CPI data that might help investors gauge the extent of rate hikes the Fed is expected to deliver this year.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, “most Asian and emerging market peers were weaker on Wednesday and would weigh on sentiments,” and “investors will remain cautious ahead of the release of critical domestic macro data.” Today’s reports include India’s inflation, IIP, and manufacturing production; the more significant FOMC minutes are due in the late evening.
The FOMC minutes showed that the Fed will maintain its aggressive monetary policy stance and will contain gains for the local unit, Iyer continued, adding that a decline in crude prices should improve emotions, although most Asian and emerging market counterparts were weaker early Thursday morning. The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased by 0.02 percent to 113.29.
In the morning trade, the rupee lost 14 paise to 82.35 against the US dollar as a result of the US dollar’s strengthening and persistent outflows of foreign funds. In the early trade on Wednesday, the rupee lost 14 paise to 82.35 against the US dollar as a result of the US dollar’s strengthening and persistent outflows of foreign funds.
Additionally, the local currency suffered from investors’ risk aversion and weak currencies in Asia and emerging markets. The local unit began trading at the interbank foreign exchange at 82.32 versus the dollar before falling further to 82.35, losing 14 paise from its previous finish.
The rupee recovered from its record low on Tuesday, closing 19 paisas higher at 82.21 against the US dollar. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, “most Asian and emerging market peers were weaker on Wednesday and would weigh on sentiments,” and “investors will remain cautious ahead of the release of critical domestic macro data.”
Today’s reports include India’s inflation, IIP, and manufacturing production; the more significant FOMC minutes are due in the late evening.
Investors are also anticipating significant US inflation data due out tomorrow, which is anticipated to affect the Federal Reserve’s stance on monetary policy, according to Iyer. He also stated that the RBI will continue to take aggressive measures if currency volatility rises during the day.
The 30-share BSE Sensex was up 229.6 points, or 0.40 percent, at 57,376.92 on the domestic equities market, and the larger NSE Nifty was up 71.60 points, or 0.42 percent, at 17,055.15.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs. 4,612.67 crores on Tuesday, making them net sellers in the capital markets. The local currency likewise reached 82.28 versus the US dollar in the first dealings of a very tumultuous session.
The benchmark for world oil, Brent crude futures, is up 0.1% to USD 92.46 a barrel. The 30-share BSE Sensex was down 109.06 points, or 0.19 percent, at 57,516.85 on the domestic equities market, and the larger NSE Nifty was down 25.85 points, or 0.15 percent, at 17,097.75.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 542.36 crore on Wednesday, making them net sellers in the capital markets. In terms of internal macroeconomics, increasing food prices caused retail inflation to reach a five-month high of 7.4%, while India’s industrial production fell to an 18-month low in August, dropping by 0.8%, primarily as a result of a decline in output from the manufacturing and mining sectors.
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