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Tag: Forex

  • In early trade, the rupee rose 17 paise to 77.17 against the US dollar

    interbank foreign exchange

    In early trade on Wednesday, the rupee rose 17 paise to 77.17 against the US dollar, as the American currency fell from its recent highs.

    The rupee began at 77.24 versus the dollar on the interbank foreign exchange, then gained further ground to quote at 77.17, up 17 paise from the previous close. The rupee also hit a low of 77.31 against the dollar in early trade.

    The rupee was trading at 77.34 against the US dollar on Tuesday.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.06 percent at 103.85.

    Domestic equities, firm crude oil prices, and ongoing foreign fund outflows, according to forex traders, could weigh on the currency and limit its gains.

    The 30-share Sensex was up 27.61 points, or 0.05 percent, at 54,392.46, while the wider NSE Nifty was up 8.30 points, or 0.05 percent, at 16,248.35 on the domestic equity market.

    Brent crude futures increased 1.83 percent to USD 104.34 per barrel, the global benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Tuesday, offloading shares worth Rs 3,960.59 crore.

  • In early trade, the rupee climbs 29 paise to 76.11 against the US dollar

    The rupee rose 29 paise to 76.11 against the US dollar in early trade on Thursday, as the US currency fell in the international market.

    The rupee rose 29 paise to 76.11 against the US dollar in early trade on Thursday, as the US currency fell in the international market.

    The rupee began at 76.17 against the US dollar on the interbank foreign exchange, then gained ground to quote at 76.11, a 29-paise increase from the previous day.

    The rupee had finished at 76.40 versus the US dollar on Wednesday.

    According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian rupee opened stronger against the US dollar on Thursday following a surprise rate hike by the Reserve Bank of India and US Fed Chairman Powell pushing back against a steeper 75-basis point rate hike in the coming months.
    Furthermore, foreign money inflows into domestic assets via the LIC IPO could boost sentiment.

    However, Asian and developing market currencies have begun to fall, and a rise in oil prices could limit the appreciation bias. Furthermore, the bearish rupee forecast remains unchanged due to the anticipation of more 50-basis-point rate hikes by the US Fed in the coming months, according to Iyer.

    The dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.03 percent lower at 102.55.
    The US dollar fell more in Asian trade on Thursday morning after Powell stated that the committee was not actively exploring a sharper 75-basis-point rate hike in the coming months, despite the fact that inflation remains well above the Fed’s 2 percent target.
    The 30-share Sensex was trading 399.81 points, or 0.72 percent, higher at 56,068.84 points, while the wider NSE Nifty was up 125.75 points, or 0.75 percent, at 16,803.35.

    Brent crude futures increased 0.35 percent to USD 110.53 per barrel, the global oil benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Wednesday, offloading shares worth Rs 3,288.18 crore.

  • IN EARLY TRADE, THE RUPEE JUMPED 8 PAISE TO 76.40 AGAINST THE US DOLLAR

    In early trade on Wednesday, the rupee rose 8 paise to 76.40 against the US dollar in anticipation of foreign fund inflows through the LIC IPO.

    The rupee began at 76.46 against the dollar on the interbank foreign exchange, then gained ground to quote at 76.40, an increase of 8 paise from the previous close.

    The rupee was trading at 76.48 against the US dollar on Monday.

    Due to Id-Ul-Fitr, the FX market was closed on Tuesday.

    The government is selling 22,13,74,920 shares in the Life Insurance Corporation (LIC) at a price range of Rs 902-949 per share, with a target of raising Rs 21,000 crore. From May 4 to 9, institutional and retail buyers will be able to purchase the issue.

    The anchor investor part of LIC’s IPO has been fully subscribed, raising roughly Rs 5,620 crore.

    Foreign fund inflows from the LIC IPO, according to Sriram Iyer, Senior Research Analyst at Reliance Securities, could counter a strong currency, which has extended gains amid aggressive rate hikes by the US Fed.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.05 percent at 103.51.

    The 30-share Sensex was down 21.42 points, or 0.04 percent, at 56,954.57 points, while the wider NSE Nifty was down 9.65 points, or 0.06 percent, at 17,059.45.

    Brent crude futures increased 0.99 percent to USD 106.01 per barrel, the global benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Monday, offloading shares worth Rs 1,853.46 crore.

  • In early trade, the rupee rose 6 paise to 76.44 against the US dollar

    In early trade on Monday, the rupee rose 6 paise to 76.44 against the US dollar, owing to a drop in global petroleum prices. However, currency traders claimed that the rupee’s advances were restrained by a sluggish trend in domestic equities and a strong dollar in the overseas market.

    The rupee opened strong at 76.48 against the US dollar on the interbank foreign exchange, rising 6 paise from the previous close to 76.44. The rupee had finished at 76.50 against the greenback in the previous session.

    The 30-share Sensex was down 336.59 points, or 0.59 percent, at 56,724.28, while the wider NSE Nifty was down 102.60 points, or 0.60 percent, at 16,999.95 on the domestic equity market.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, increased by 0.43 percent to 103.40.

    Brent crude futures fell 0.94 percent to USD 106.13 per barrel, the global benchmark. According to exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 3,648.30 crore.

  • As the yen falls on the dovish BOJ, the dollar reaches a 20-year high and the euro a 5-year low

    The dollar rose to a 20-year high against its peers on Thursday as the Bank of Japan maintained its dovish stance, sending the yen to its lowest level since 2002 and the euro to a five-year low amid concerns about the region’s economic growth.

    The dollar soared beyond 130 yen as the Bank of Japan reaffirmed its commitment to maintaining ultra-low interest rates by promising to buy an infinite number of bonds everyday to meet its yield target.
    Given the pressure mounting throughout foreign exchange markets, there had been considerable market speculation that the BOJ might take a step back.

    After reaching a high of 103.93, the dollar index was last seen at 103.73, up 0.74 percent for the day.

    After data showed that the US economy unexpectedly fell in the first quarter due to a resurgence in COVID-19 cases, the greenback lost ground.

    Rai, on the other hand, claimed that the data did not necessarily show a sluggish economy, but that it was skewed by a much higher trade deficit caused by rising imports.

  • In early trade, the rupee fell 16 paise to 76.72 against the US dollar.

    stock exchange data

    In early trade on Wednesday, the rupee fell 16 paise to 76.72 against the US dollar, driven down by the greenback’s strength and continuous foreign fund outflows.

    The rupee opened at 76.69 versus the dollar on the interbank foreign exchange, before losing ground to quote at 76.72, a drop of 16 paise from the previous close.

    The rupee was trading at 76.56 against the dollar on Tuesday. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee opened worse against the dollar on Wednesday as the American currency resumed its upward trend.

    Asian and emerging market counterparts were mixed, but Iyer noted that anticipation of Chinese intervention should limit the peers’ depreciation bias and boost sentiment for the local currency.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.05 percent at 102.34.

    Concerns about China’s weakening growth and predictions that the Federal Reserve will raise rates rapidly increased demand for the greenback, according to Iyer.

    On the domestic front, the 30-share Sensex was down 392.12 points, or 0.68 percent, at 56,964.49, while the wider NSE Nifty was down 126.25 points, or 0.73 percent, at 17,074.55.

    Brent crude prices increased 0.27 percent to USD 105.27 per barrel, the global benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Tuesday, offloading shares worth Rs 1,174.05 crore.

  • Sri Lanka’s forex crisis leads to a tourism crisis

    With Sri Lanka going through an ongoing foreign exchange criss, governments of the United Kingdom, and Canada have warned their travellers about the economic situation. The UK government has warned its travellers that Sri Lanka is reeling under a crisis with shortages of medicines, food, and fuel, as there is now a shortage of hard currency for imports.
    The country declared that it’s in crisis back in August, 2021. With the 2019 Easter Bombings, and then the covid pandemic, tourism has already been hit in a bad way in the country. Now the foreign exchange crisis might further affect travel.

    The United Kingdom, along with Russia and India are the three biggest sources of inbound tourism for Sri Lanka. Tourism accounts for 5 per cent of the country’s GDP. There has been a decline in international tourist arrivals in Sri Lanka in March 2020, by about 70.8 percent when comared to the same time frame a year ago.

    The government in Canada has also asked its citizens to have food, water, and fuel supplies in hand in case of a disruption. The government has also asked its travellers to have enough supply of medicines at hand.

    The Sri Lankan public has in fact faced a shortage of essentials due to the forex crisis, as its import restrictions have led to a shortage in cooking gas, and fuel supplies. This has also led to power cuts in the country.