The rupee on Thursday plummeted to an over three-month low of 63.32 by losing 50 paise against the US dollar.
Rupee falls 5 paise against dollar, ends at 61.92.
The rupee is under pressure for the past one week.
Equity markets will be driven by the outcome of the US Federal Reserve's interest rate decision this week, analysts said. Moreover, equity benchmarks will also continue to be guided by foreign fund movement and trend in Brent crude oil, they added. "The global markets are looking nervous after the US inflation numbers, which have caused the dollar index to hover around 110," said Santosh Meena, head of research, Swastika Investmart Ltd. Now everyone is eyeing the outcome of the upcoming US Federal Open Market Committee (FOMC) meeting.
The Rupee is likely to recover during day trad, say currency watchers.
The rupee firmed up by 15 paise to close at 62.36 per dollar on fresh selling by banks
Overall, volume growth is likely to be in the range of 3-8 per cent for two-wheelers and 5-7 per cent for passenger vehicles owing to healthy demand from urban and rural areas and pending order books.
Rupee edges higher against dollar at close.
A weak dollar overseas supported the rupee sentiment.
The domestic currency had lost 15 paise to close at 63.82 on Wednesday.
The risk-reward for the Indian markets, Morgan Stanley said, is turning favourable.
Weakness of the dollar against other currencies overseas gave the rupee more muscle.
The rupee has depreciated by 0.6 per cent so far in the current financial year.
The rupee had depreciated by 13 paise to end at 67.20.
The rupee had plunged by 19 paise to close at over 3-week low.
The sharp rally in the midcap stocks has made valuations expensive, and there is room for a correction, wrote Christopher Wood, global head of equity strategy at Jefferies in his latest note to investors, GREED & fear. The midcap index, Wood said, now trades at 24.1x 12-month forward earnings compared with 18.7x for the Nifty. Rising crude oil prices, he believes, are another worry for India, which imports nearly 80 per cent of its annual crude oil requirement.
'Growth, liquidity and deposit mobilisation are likely to be discussed during the interaction.'
A weak dollar in overseas markets also strengthened the rupee sentiment
The rupee has dropped by 49 paise or 0.75 per cent in four days.
However, foreign capital inflows into equity market restricted the rupee's fall to some extent.
Shares worth over Rs 50,000 crore (or approximately $6 billion) are set to become freely tradable between now and April 10. Historically, such substantial volumes have been absorbed by a buoyant block-deal market.
The rupee on Tuesday tumbled by 32 paise to close at 64.17 on fresh dollar demand from importers.
Weakness in euro against the dollar weighed on the rupee.
Abheek Barua & Bidisha Ganguly explain why the US treasury should intervene if the overvalued greenback continues to rise.
Rupee closed at 61.86 against the dollar on Tuesday.
The rupee recovered from initial losses against the US dollar and was quoted barely steady at 61.91 on selling of the American currency by banks and exporters on good foreign capital inflows.
The Indian rupee on Thursday appreciated by 12 paise to end at 66.71.
Interim Budget, the US Federal policy decision and quarterly earnings will be the major drivers for stock markets which may also see some consolidation this week, say analysts. Besides, investors would also focus on the trading activity of foreign investors and global trends for further cues. From the macroeconomic front, the PMI (Purchasing Managers' Index) data for the manufacturing sector is scheduled to be announced on Thursday.
The US dollar index was up by 0.16 per cent at 96.53.
The dollar index was trading lower by 0.03 per cent against its major global rivals today.
Global trends, trading activity of foreign investors and movement of oil benchmark Brent crude would dictate terms in the domestic markets this week, analysts said. Equity markets, which fell nearly 3 per cent last week, may face volatile trends amid the monthly derivatives expiry on Thursday. "This week marks the September month Futures and Options (F&O) expiry, which is expected to bring about volatility in the market," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Equity benchmark indices are facing massive corrections, with the NSE Nifty declining over 14 per cent from its lifetime high hit in September last year due to several negative triggers like stretched valuations, foreign fund exodus, disappointing quarterly earnings and rising global trade tensions dragging markets lower. The BSE benchmark Sensex hit its record peak of 85,978.25 on September 27 last year, and the Nifty also reached a lifetime high of 26,277.35 on the same day.
Geopolitical events, macroeconomic data and quarterly earnings of corporates would guide the stock market in a holiday-shortened week ahead, analysts said. Stock markets will remain closed on Wednesday for Ram Navami. "This week promises to be crucial for the market as fresh worries about a potential conflict between Iran and Israel emerge.
The rupee on Friday rebounded from the near-80 levels to close higher by 17 paise at 79.82 against the US currency following a recovery in the domestic stocks and weakness in the greenback in overseas markets. The US dollar retreated from the two-decade high levels against a basket of six currencies which supported the rupee sentiment. At the interbank foreign exchange market, the local currency opened at 79.95 and witnessed an intra-day high of 79.82 and a low of 79.96 against the US dollar in the day trade. ,
The rupee had eased by 2 paise to close at fresh 2-month low of 62.78.
The rupee on Friday bounced back 32 paise to close at 64.74 against the American currency on fresh selling of dollar.
It moved in a range of 63.54 and 63.81 per dollar during the day.
The rupee had jumped by 16 paise to end at over two-month high of 61.71 against the greenback on good inflows in local markets and sustained dollar sales by exporters.
Forex dealers said that weakness in the dollar against other currencies overseas also supported the rupee.
