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
Bouts of dollar demand from importers put pressure on the rupee
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.
The rupee rose by seven paise to 62.10 against the dollar.
A higher opening in the domestic stock market buoyed the rupee sentiment
Strength in the dollar against some other currencies overseas weighed on the rupee but a higher opening in the domestic equities cushioned the impact
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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.
Persistent selling of the American currency by exporters and bank supported the rupee
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.
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.
However, the US dollar's strength against other currencies overseas capped the rupee's gain
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.
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 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.
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.
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 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 had closed barely steady at 63.75 on Wednesday.
It hovered in a range of 63.57 and 63.70.
The local currency had surged 35 paise to 63.65 in Thursday's trade.
Banks and exporters preferred to reduce their dollar position on hopes of further capital inflows as foreign portfolio investors infused $107.22 million yesterday as per the record of Securities and Exchange Board of India.
Frantic dollar demand from corporates along with an aggressive hedging strategy adopted by importers in the wake of the currency volatility predominately took a toll on the domestic unit despite moves by the central bank to stabilise the currency.
The partially convertible rupee was trading at 65.87/88 per dollar.
The rupee had plunged to close at its fresh two-year low of 66.84 against the dollar by falling 11 paise in Tuesday's trade.
The industrial production grew by two per cent in September, mainly on account of better performance by power and mining sectors.
The rupee had dropped 18 paise against the dollar on Thursday.
The rupee depreciated 20 paise to close at 63.84 in Monday's trade.
The rupee on Monday tumbled by 68 paise to close at a nearly 8-week low of 66.44 against the American currency.
A lower opening of the domestic equity market put pressure on the rupee.
The dollar index was trading marginally higher by 0.06 per cent.
Weakness of dollar in the overseas market also boosted the rupee value, a forex dealer said.
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Demand for the dollar from importers weighed on the local currency.
Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.
The rupee opened slightly higher by Rs 67.24 against Tuesday's closing level of Rs 67.26 per dollar.
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