![]() Inter-bank market rates for dollar on Thursday An energy standoff between European nations and Russia focused investors minds on how tight fuel supply may become. Meanwhile, oil prices, a key determinant of currency parity, rose nearly $1 per barrel on Thursday after dropping through key technical support levels in the previous session. The US dollar index, which measures the greenback against six major peers, edged up 0.04% to 109.73, after a peak of 110.79 on Wednesday, a level not seen since June 2002. Globally, the dollar continued to gain strength and hovered near a two-decade high hit in the previous session as investors looked for fresh insight on the global monetary tightening path from a European Central Bank rate decision and comments from the head of the Federal Reserve. “Moreover, after the International Monetary Fund (IMF) funding, flows from other creditors are also in the offing which will improve the liquidity position and reduce pressure on the rupee,” he said. The analyst said pressure on rupee would ease if oil prices drop below $80 per barrel. This is also having an impact as speculation has increased in the market,” Naseer told Business Recorder. “There is also some import pressure, as the country is importing edible items in the wake of floods. Umair Naseer, Head of Research at Topline Securities, highlighted that the dollar is strengthening against other currencies as well. Additionally, a surge in demand for the foreign currency in the local market, led by pressure from import payments, has added to rupee's weakness. The decline has been attributed to a number of factors including a strengthening dollar in the international market. ![]() ThePrint holds no responsibility for its content.On Wednesday, the rupee had registered a loss for the fourth successive session to close at 223.42 after declining by Rs2 or 0.9% against the greenback. This report is auto-generated from PTI news service. Meanwhile, the country’s foreign exchange reserves declined by USD 3.007 billion to USD 561.046 billion in the week ended August 26, the Reserve Bank of India (RBI) data showed. On the domestic equity market front, the BSE Sensex ended 321.99 points or 0.54 per cent higher at 60,115.13, while the broader NSE Nifty gained 103.00 points or 0.58 per cent to 17,936.35.įoreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 2,132.42 crore, as per exchange data. “Prices have been taking support near 79.90-80.00 mark strongly and faced resistance near 79.50, which is the 50 DMA mark, if prices starts trading higher above 79.50 on rupee then further rise in rupee can be seen, which can take price of rupee towards 79.00 levels,” Trivedi said. The common currency is expected to add gains as there is no apparent big market-moving news and no major development to speak of,” Parmar said.Īccording to Jateen Trivedi, VP Research Analyst at LKP Securities, rupee traded in a volatile range of 79.45-79.70 and ended near 79.55 as Crude prices gave short covering from lower levels and dollar index stayed weak. “The euro extended gains, rising the most in six months against the dollar, after hawkish commentary from ECB policymakers and reports of Ukraine retaking territory from Russia boosted sentiment. Spot USDINR is expected to trade in the range of 79.20 to 79.90 with a near-term bias turning slightly weak amid broad-based dollar weakness. Following the stronger Chinese Yuan, the rupee opened at 79.68 and made an intra-day high of 79.4675 before closing at 79.53,” said Dilip Parmar, Research Analyst, HDFC Securities. “Indian rupee started the week on a positive note following risk-on moods and a weaker dollar index. Euro did witness volatility but hawkish central bank statements kept the currency supported at lower levels,” Somaiya said. “Gains in the currency were led also by a rally in domestic equities. ![]() Somaiya further said the expectation is that inflation could remain unchanged compared to the previous month. Market participants remained cautious also ahead of inflation and IIP numbers that will be released on the domestic front,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services. “Rupee continued to appreciate as the dollar weakened against its major crosses.
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