Trading activity was adversely affected at the Interbank Foreign Exchange market early on Wednesday because of thin attendance due to the Mumbai bandh called by the Opposition parties in the state.
The Indian rupee today dipped to a two-year low of 46 against the US dollar following heavy demand from importers for the greenback.
Spurting by a whopping 21 paise, the rupee scaled a fresh over 50-1/2-month closing peak at Rs 43.53/54 per dollar on Wednesday.
Resuming its slide against the greenback, the Indian rupee plunged to its more than one-year low of 41.76/77 against a US dollar. Heavy demand for US currency in view of high oil prices continued modest on its short supply. The Interbank Foreign Exchange (Durex) market witnessed brisk trade with wide fluctuations in the local currency in a range of 41.55 and 41.79 during the day. The local currency lost 41 paise against the US counterpart.
In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 39.32/34 a dollar from yesterday's close of 39.44/45 a dollar and later surge to 39.31 level on the back of heavy capital inflows into equity.
The Reserve Bank has told the International Monetary Fund (IMF) that the objective of frequent interventions in the forex market is to curb excessive volatility, dismissing the Fund's rationale for reclassifying India's exchange rate regime. The IMF, following the Article IV consultation with the Indian authorities, reclassified the status of the exchange rate regime to "stabilised arrangement" from "floating" for period between December 2022 to October 2023. India's Executive Director at IMF K V Subramanian and Senior Advisors Sanjay Kumar Hansda and Anand Singh questioned the selection period adopted by the Fund for analysis and also reclassification of the country's exchange rate regime.
The rupee continued to resist the pressure from oil companies and appreciated marginally against the US currency in Wednesday morning dealings.
The rupee tumbled to an over four-month closing low of Rs 45.60/62 per dollar on Friday, following heavy all-round dollar demand
The rupee plunged against the US dollar early on Tuesday on renewed hectic all-round dollar demand amidst an acute cash dollar shortage scare with sentiments turning distinctly weak for a further sharp decline.
Forex dealers attributed the rupee's fall to increased demand for the US currency from importers
As news of explosions came in, the rupee initially plunged by over ten paise to Rs 45.97/99 from opening levels of Rs 45.8450/8600
Continuing its fall for the sixth consecutive day, the Indian rupee on Monday depreciated by 43 paise against the greenback in opening trade
The rupee rallied smartly against the US currency and scaled a new 27-1/2-month closing peak of Rs 46.5350/5450 per dollar on Thursday.
Sensex crashed more than 1,000 points in opening trade. Asian stocks plunged too on Friday.
The US Fed kept its near-zero benchmark interest rate unchanged.
The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time in early trade on Friday, weighed down by the strong american currency and risk-off sentiment among investors. Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite. Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 42.20/22 a dollar from Tuesday's close of 42.10/12. It dropped further to a low of 42.67 a dollar due to heavy dollar buying by oil refiners as the global crude oil prices remained near $126 a barrel after striking a new peak of $126.98 a barrel in intra-day trade at New York on Tuesday. Sustained capital outflows also partly affected the rupee sentiment.
The domestic unit closed higher by 11 paise at 66.56 in Wednesday's trade.
Bouts of dollar demand from importers put pressure on the rupee
In a quiet trade at the Interbank Foreign Exchange (Forex) market, the local currency resumed firm at 39.46/48 a dollar from Wednesday's close of 39.5450/5500 a dollar, but later trimmed gains at 39.49/50 per dollar in late morning deals. It swung in a range of 39.46 and 39.53 in early trade.
Rupee climbs further to fresh nine year high of 39.785 against the US dollar
The rupee had last ended at better levels at Rs 45.7800/7850 per dollar on September 15, 2000.
Meanwhile, the rupee opened at Rs 46.11/12 per dollar and was quoted at Rs 46.1125/1225 in late morning deals, it changed little from overnight close of Rs 46.1150/1250.\n\n\n\n
The rupee rose by seven paise to 62.10 against the dollar.
The rupee on Monday tumbled against the US currency on a fresh wave of all-round dollar short-covering by banks, corporates and importers in the fairly active trade at the Interbank foreign exchange market.
Strength in the dollar against some other currencies overseas weighed on the rupee but a higher opening in the domestic equities cushioned the impact
A higher opening in the domestic stock market buoyed the rupee sentiment
Persistent selling of the American currency by exporters and bank supported the rupee
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In global markets, the dollar declined against key rivals in early trade as investors weighed the prospects for a continuation of monetary stimulus from the US Federal Reserve.
Lower crude oil prices and a rally in domestic equities restricted the losses to some extent, forex dealers said. At the interbank foreign exchange market, the domestic currency opened weak at 79.50 per dollar.
Forex dealers said a higher opening in the domestic equity market and dollar's weakness against other currencies overseas after the US Federal Reserve kept its easing policy unchanged also supported the rupee.
The domestic unit had lost 7 paise to close at 66.87 in Tuesday's trade.
However, the US dollar's strength against other currencies overseas capped the rupee's gain
The rupee depreciated 6 paise to 77.50 against the US dollar in the opening trade on Wednesday as a surging American currency in the overseas markets and persistent foreign fund outflows weighed on investor sentiment. Besides, rising global crude prices impacted the domestic unit, forex traders said. However, a higher opening in the domestic equity market restricted the rupee's fall, they added.
The rupee crashed further for the fourth straight session on Friday and nosedived by a whopping 56 paise due to persistent heavy dollar demand along with further rise in the US currency against other major world currencies.
There was mild selling of dollars by banks and exporters
In New York, the dollar fell against other major currencies on Monday after a December reading on the US services sector came in below market expectations.
The rupee was hovering in a range of 66.65 and 66.89 in morning trade.
The rupee resumed higher at 59.10 per dollar as against the last Friday's closing level of 59.17 at the Interbank Foreign Exchange market.
The rupee had closed barely steady at 63.75 on Wednesday.
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