Informist, Thursday, Sep 8, 2022

By Pratiksha

NEW DELHI – The rupee ended sharply higher against the greenback today because of ease in the dollar index from a two-decade high and continuous dollar sales by foreign portfolio investors, dealers said.   

After moving in a range of 18 paise through the day, the rupee settled 0.2% higher at 79.7100 a dollar today, as against 79.9000 a dollar on Wednesday.

The Indian currency opened higher at 79.6800 a dollar because prices of crude oil fell to a seven-month low on Wednesday, as COVID-19 curbs in China raised concerns of a slowing global economy, dealers said. 

Prices also tumbled on fears of widespread demand destruction in Europe due to elevated inflation.

A fall in crude oil prices decreases India's import bill, which subsequently supports the Indian currency.

At 1633 IST, the November contract of Brent crude oil on the Intercontinental Exchange was at $88.32 a barrel as against the previous close of $88.00 a bbl on Wednesday. On Tuesday, the November contract had settled at $92.83 a bbl.

An hour into trade, the Indian unit touched the day's low of 79.8325 a dollar as some state-owned banks purchased dollars on behalf of oil marketing companies, dealers said.

"Most importers were waiting for more attractive levels like 79.50 (a dollar)," a dealer with a brokerage firm said. "However, few oil importers were buying (dollars) in good volume, which kept the rupee under pressure."

However, as some foreign banks, including a US-based bank, stepped in to sell the greenback on behalf of foreign portfolio investors, the rupee jumped to the day's high of 79.6500 a dollar, dealers said.

Dealers said a surge in domestic equity indices prompted banks to sell dollars on behalf of foreign portfolio investors. The Nifty 50 and the Sensex closed 1.0% and 1.1% higher, respectively.

"There were good inflows in the market today since equities were positive," a dealer with a state-owned bank said. "However, the immediate resistance level of 79.50 (a dollar) was not breached."

Meanwhile, the dollar index eased further from the two-decade high it hit on Wednesday, ahead of comments from US Federal Reserve Chair Jerome Powell later today. This also lent support to the Indian unit, dealers said. 

The index had surged after an upbeat report on the US services industry for August raised expectations that the Fed would continue with aggressive interest rate hikes.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose to 110.79 on Wednesday, a level not seen since June 2002. 

At 1633 IST, the dollar index was at 109.54 compared with 109.84 on Wednesday. It was at 110.21 on Tuesday.

After trading in a narrow range of 79.70-79.74 a dollar during the final hour of trade, the domestic unit went on to close at 79.7100 a dollar.

FORWARDS

The premium on one-year dollar/rupee forwards ended largely steady today due to the absence of fresh triggers, dealers said.

The premium on the one-year, exact-period dollar/rupee forward contract was at 232.35 paise as against 234.74 at close on Wednesday. On an annualised basis, the premium was at 2.91%, against 2.92% at the previous close.

OUTLOOK

On Friday, the rupee will take cues from overnight movement in the dollar index and crude oil prices, dealers said.

Market participants are waiting for the outcome of the European Central Bank's meeting later today. The central bank may hike policy rates by as much as 75 basis points, which could tip the continent's economy into a recession.

Market participants are also waiting for comments from Fed Chair Jerome Powell later today, for further cues on Fed's policy tightening plan.

Dealers expect the RBI to continue to intervene through dollar sales to protect the rupee from depreciating sharply against the greenback.

They see technical resistance for the rupee at 79.50 a dollar, and technical support at 80.00 a dollar.

During the day, the rupee is seen in a range of 79.60-79.95 a dollar.

India Rupee: Remains sharply up as FPIs sell dlrs, dlr index eases

NEW DELHI – The rupee remained sharply up against the greenback as foreign banks sold dollars on behalf of foreign portfolio investors, dealers said.

Dealers said gains in domestic equity indices prompted banks to sell dollars on behalf of foreign portfolio investors. At 1252 IST, the Nifty 50 and the Sensex were 0.6% and 0.7% higher, respectively.

Meanwhile, the dollar index eased further from the two-decade high it hit on Wednesday, ahead of comments from US Federal Reserve Chair Jerome Powell later today. This further supported the Indian unit, dealers said. 

The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose to 110.79 on Wednesday, a level not seen since June 2002. 

At 1252 IST, the dollar index was at 109.65 compared with 109.84 on Wednesday. It was at 110.21 on Tuesday.

Earlier today, the Indian unit touched the day's low of 79.8325 a dollar as some state-owned banks purchased dollars on behalf of oil marketing companies, dealers said.

Dealers have pegged immediate technical resistance for the rupee at 79.50 a dollar. 

For the rest of the day, the Indian unit is seen moving in the range of 79.5000-79.9000 a dollar. (Pratiksha)

India Rupee: Rises sharply on overnight fall in oil prices, dlr index

NEW DELHI – The rupee rose sharply against the dollar today because prices of crude oil fell to a seven-month low on Wednesday, dealers said.

Prices fell as COVID-induced curbs in China led to concerns of a slowing global economy, dealers said.
 

At 0937 IST, the November contract of Brent crude oil on the Intercontinental Exchange was at $88.91 a barrel as against the previous close of $88.00 a bbl on Wednesday. On Tuesday, the November contract had settled at $92.83 a bbl.

Moreover, the dollar index retreated from the two-decade high it hit on Wednesday, which also aided the local unit, dealers said. 

The index had surged after an upbeat report on the US services industry for August raised expectations that the US Federal Reserve would continue with aggressive interest rate hikes.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose to 110.79 on Wednesday, a level not seen since June 2002. 

At 0937 IST, the dollar index was at 109.82 compared with 109.84 on Wednesday. It was at 110.21 on Tuesday.

"Importers may find these levels lucrative," a dealer with a state-owned bank said. "However, some caution is expected ahead of the ECB policy outcome today." 

Market participants now await the outcome of European Central Bank's meeting due later today. The central bank may hike policy rates by as much as 75 basis points, which is feared to tip the continent's economy into a recession.

For the rest of the day, the Indian unit is seen at 79.5000-79.9000 a dollar.  (Pratiksha)

India Rupee: Expected range for rupee - Sep 8

NEW DELHI – Following are the expected support and resistance levels for the rupee, as forecasted by leading banks and brokerages in an Informist poll:

(Pratiksha)

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shirsha Thakur

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Thursday, Sep 8, 2022

By Pratiksha

NEW DELHI – The rupee ended sharply higher against the greenback today because of ease in the dollar index from a two-decade high and continuous dollar sales by foreign portfolio investors, dealers said.   

After moving in a range of 18 paise through the day, the rupee settled 0.2% higher at 79.7100 a dollar today, as against 79.9000 a dollar on Wednesday.

The Indian currency opened higher at 79.6800 a dollar because prices of crude oil fell to a seven-month low on Wednesday, as COVID-19 curbs in China raised concerns of a slowing global economy, dealers said. 

Prices also tumbled on fears of widespread demand destruction in Europe due to elevated inflation.

A fall in crude oil prices decreases India's import bill, which subsequently supports the Indian currency.

At 1633 IST, the November contract of Brent crude oil on the Intercontinental Exchange was at $88.32 a barrel as against the previous close of $88.00 a bbl on Wednesday. On Tuesday, the November contract had settled at $92.83 a bbl.

An hour into trade, the Indian unit touched the day's low of 79.8325 a dollar as some state-owned banks purchased dollars on behalf of oil marketing companies, dealers said.

"Most importers were waiting for more attractive levels like 79.50 (a dollar)," a dealer with a brokerage firm said. "However, few oil importers were buying (dollars) in good volume, which kept the rupee under pressure."

However, as some foreign banks, including a US-based bank, stepped in to sell the greenback on behalf of foreign portfolio investors, the rupee jumped to the day's high of 79.6500 a dollar, dealers said.

Dealers said a surge in domestic equity indices prompted banks to sell dollars on behalf of foreign portfolio investors. The Nifty 50 and the Sensex closed 1.0% and 1.1% higher, respectively.

"There were good inflows in the market today since equities were positive," a dealer with a state-owned bank said. "However, the immediate resistance level of 79.50 (a dollar) was not breached."

Meanwhile, the dollar index eased further from the two-decade high it hit on Wednesday, ahead of comments from US Federal Reserve Chair Jerome Powell later today. This also lent support to the Indian unit, dealers said. 

The index had surged after an upbeat report on the US services industry for August raised expectations that the Fed would continue with aggressive interest rate hikes.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose to 110.79 on Wednesday, a level not seen since June 2002. 

At 1633 IST, the dollar index was at 109.54 compared with 109.84 on Wednesday. It was at 110.21 on Tuesday.

After trading in a narrow range of 79.70-79.74 a dollar during the final hour of trade, the domestic unit went on to close at 79.7100 a dollar.

FORWARDS

The premium on one-year dollar/rupee forwards ended largely steady today due to the absence of fresh triggers, dealers said.

The premium on the one-year, exact-period dollar/rupee forward contract was at 232.35 paise as against 234.74 at close on Wednesday. On an annualised basis, the premium was at 2.91%, against 2.92% at the previous close.

OUTLOOK

On Friday, the rupee will take cues from overnight movement in the dollar index and crude oil prices, dealers said.

Market participants are waiting for the outcome of the European Central Bank's meeting later today. The central bank may hike policy rates by as much as 75 basis points, which could tip the continent's economy into a recession.

Market participants are also waiting for comments from Fed Chair Jerome Powell later today, for further cues on Fed's policy tightening plan.

Dealers expect the RBI to continue to intervene through dollar sales to protect the rupee from depreciating sharply against the greenback.

They see technical resistance for the rupee at 79.50 a dollar, and technical support at 80.00 a dollar.

During the day, the rupee is seen in a range of 79.60-79.95 a dollar.

India Rupee: Remains sharply up as FPIs sell dlrs, dlr index eases

NEW DELHI – The rupee remained sharply up against the greenback as foreign banks sold dollars on behalf of foreign portfolio investors, dealers said.

Dealers said gains in domestic equity indices prompted banks to sell dollars on behalf of foreign portfolio investors. At 1252 IST, the Nifty 50 and the Sensex were 0.6% and 0.7% higher, respectively.

Meanwhile, the dollar index eased further from the two-decade high it hit on Wednesday, ahead of comments from US Federal Reserve Chair Jerome Powell later today. This further supported the Indian unit, dealers said. 

The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose to 110.79 on Wednesday, a level not seen since June 2002. 

At 1252 IST, the dollar index was at 109.65 compared with 109.84 on Wednesday. It was at 110.21 on Tuesday.

Earlier today, the Indian unit touched the day's low of 79.8325 a dollar as some state-owned banks purchased dollars on behalf of oil marketing companies, dealers said.

Dealers have pegged immediate technical resistance for the rupee at 79.50 a dollar. 

For the rest of the day, the Indian unit is seen moving in the range of 79.5000-79.9000 a dollar. (Pratiksha)

India Rupee: Rises sharply on overnight fall in oil prices, dlr index

NEW DELHI – The rupee rose sharply against the dollar today because prices of crude oil fell to a seven-month low on Wednesday, dealers said.

Prices fell as COVID-induced curbs in China led to concerns of a slowing global economy, dealers said.
 

At 0937 IST, the November contract of Brent crude oil on the Intercontinental Exchange was at $88.91 a barrel as against the previous close of $88.00 a bbl on Wednesday. On Tuesday, the November contract had settled at $92.83 a bbl.

Moreover, the dollar index retreated from the two-decade high it hit on Wednesday, which also aided the local unit, dealers said. 

The index had surged after an upbeat report on the US services industry for August raised expectations that the US Federal Reserve would continue with aggressive interest rate hikes.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, rose to 110.79 on Wednesday, a level not seen since June 2002. 

At 0937 IST, the dollar index was at 109.82 compared with 109.84 on Wednesday. It was at 110.21 on Tuesday.

"Importers may find these levels lucrative," a dealer with a state-owned bank said. "However, some caution is expected ahead of the ECB policy outcome today." 

Market participants now await the outcome of European Central Bank's meeting due later today. The central bank may hike policy rates by as much as 75 basis points, which is feared to tip the continent's economy into a recession.

For the rest of the day, the Indian unit is seen at 79.5000-79.9000 a dollar.  (Pratiksha)

India Rupee: Expected range for rupee - Sep 8

NEW DELHI – Following are the expected support and resistance levels for the rupee, as forecasted by leading banks and brokerages in an Informist poll:

(Pratiksha)

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shirsha Thakur

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.