4 days ago
Rupee Rises 13 Paise Against Dollar on Retreating Yields
The rupee became slightly stronger against the US dollar on Wednesday.
It ended at 95.81 rupees per dollar, up 13 paise from the previous day.
A weaker dollar and lower US Treasury yields helped the rupee.
Oil prices also moved down from recently high levels, although Brent crude later traded slightly higher during the session.
Weak Indian share markets stopped the rupee from gaining more.
Foreign investors have been selling Indian shares, which puts pressure on the rupee.
Traders are watching possible talks involving the United States and Iran.
They are also waiting for several US economic reports that could affect currency trading.
The rupee gained 13 paise to close provisionally at 95.81 against the US dollar on Wednesday.
A weaker US Dollar Index, easing US Treasury yields and retreating crude prices supported the rupee.
The currency opened at 95.87 and reached an intraday low of 95.98.
Weak domestic equities, foreign portfolio outflows and firm US yields limited the rupee’s gains.
Traders expect the rupee to retain a negative bias amid uncertainty over US-Iran discussions and global risk aversion.
- Who
- The Indian rupee, US dollar, forex traders and foreign portfolio investors were involved in the market movement.
- What
- The rupee rose 13 paise to close provisionally at 95.81 per US dollar.
- Where
- The interbank foreign exchange market and Indian financial markets.
- When
- Wednesday; the previous close was recorded on Tuesday.
- Why
- The rupee was supported by a weaker Dollar Index, easing US Treasury yields and softer crude prices, but gains were limited by weak domestic markets, foreign outflows and global risk aversion.
Key facts
- Closing exchange rate
- 95.81 rupees per US dollar, provisional
- Daily movement
- The rupee gained 13 paise
- Opening rate
- 95.87 per US dollar
- Intraday low
- 95.98 per US dollar
- Dollar Index
- 101.23, down 0.14%
- Brent crude
- USD 103.18 per barrel, up 0.58% in futures trade
- Foreign portfolio outflows
- Around USD 2.2 billion during the month
- Domestic equities
- Sensex fell 48.78 points and Nifty declined 95.75 points
Quotes
Anuj Choudhary
Research Analyst at Mirae Asset Sharekhan
“We expect the rupee to trade with a negative bias on uncertainty over the US-Iran deal and risk aversion in global markets. Concerns over a strong Dollar and elevated US treasury yields may also pressurise the rupee.”
CNBC TV 18
“hopes that US and Iran officials are expected to talk through mediators may support the rupee at lower levels. Traders may take cues from ADP non-farm employment, core PCE price index and final GDP data from the US.”
CNBC TV 18
Sources
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