12 hrs ago
Rupee Gains 10 Paise Against Dollar Amid Market Pressures
The Indian rupee became a little stronger against the US dollar early Thursday.
It was trading at 96.65 rupees for one dollar, after closing at 96.75 the day before.
Traders thought the Reserve Bank of India may have helped support the rupee.
Still, a strong dollar, expensive oil and investors moving money out of Indian shares were putting pressure on it.
Oil prices were also rising because traders worried about supply disruptions near the Strait of Hormuz.
Indian share markets were lower in early trading too.
The rupee rose 10 paise to 96.65 against the US dollar in early Thursday trade.
It opened at 96.71 after closing at 96.75 on Wednesday.
Traders cited likely Reserve Bank of India intervention, while persistent economic pressures continued to weigh on the currency.
The dollar index stood at 102.25, while Brent crude rose 2.17% to USD 102.37 per barrel.
The Sensex and Nifty fell in early trade, and foreign investors sold equities worth Rs 6,121.37 crore on Wednesday.
- Who
- The Indian rupee, the US dollar and currency-market participants.
- What
- The rupee gained 10 paise to 96.65 against the US dollar in early trade.
- Where
- The interbank foreign exchange market in India.
- When
- Thursday morning; the previous close was on Wednesday.
- Why
- Traders attributed the gain to likely Reserve Bank of India intervention, while dollar strength, elevated oil prices and foreign fund outflows continued to pressure the rupee.
Rupee Support
Rupee Pressures
Central bank intervention
Rupee Support
Traders said likely Reserve Bank of India intervention helped the rupee edge up in early trade.
Rupee Pressures
The article also reports that strong importer demand for dollars and safe-haven capital shifts had driven the exchange rate higher, despite the RBI's policy stance.
Currency outlook
Rupee Support
The rupee strengthened 10 paise in early trade, and the RBI Governor was quoted as saying the central bank would help the rupee find its true value.
Rupee Pressures
Traders cited a strong dollar, elevated crude prices and foreign fund outflows as continuing sources of pressure on the rupee.
Key facts
- Early rupee rate
- 96.65 per US dollar
- Change
- Up 10 paise from the previous close
- Opening rate
- 96.71 per US dollar
- Previous close
- 96.75 per US dollar on Wednesday
- Dollar index
- 102.25, up 0.01%
- Brent crude
- USD 102.37 per barrel, up 2.17%
- Foreign investor sales
- FIIs sold equities worth Rs 6,121.37 crore net on Wednesday
- Early market levels
- Sensex: 72,408.15, down 264.97 points; Nifty: 22,507.65, down 87.50 points
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“Strong corporate importer demand for dollars together with safe-haven capital shifts overpowered the RBI's hawkish policy stance, driving USD/INR higher through the afternoon until routine state-run bank interventions helped stem further losses.”
deccanchronicle.com
“The main reason for the rebound in crude oil prices is persistent concern over Middle East supply and shipping disruptions, particularly with attacks on tankers in the Gulf and around the Strait of Hormuz intensifying.”
deccanchronicle.com
Sources
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