The rupee fell 32 paise against the US dollar on Tuesday, September 7 to settle at 73.42 (for now), followed by stronger US currencies in the overseas market and a muted trend in domestic stocks. In the interbank foreign exchange market, the domestic unit opened at 73.12 and fell to a level of 73.44 during the trading session. During an early trading session, the local unit fell five paise to 73.15 versus the greenback. Against the dollar, the domestic unit closed at 73.42, 32 paise lower than at the previous close.
On Monday, September 6, the domestic currency rose at 73.10 against the greenback. According to forex traders, the rupee was in line with other Asian counterparts. Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, traded 0.22 percent higher at 92.23.
Anindya Banerjee, DVP, Currency Derivatives and Interest Rate Derivatives at Kotak Securities:
The rupee on the ground jumped 30 paise to 73.40 against the dollar, likely reflecting strong corporate demand for the dollar. A strong US Dollar Index also helps the weakness of the rupee. However, the benefit remains limited due to exporter sales and the influx of FPIs. We expect a range of 73.00 and 73.70 locally.”
Kshitij Purohit, Lead International & Commodities at CapitalVia Global Research Limited:
“On the domestic front, the USD/INR opened on a flat note in September and moved slightly sideways towards a bullish trend. prices respect the 73.10-73.08 support zone, as we have discussed many times in previous sessions. This is because 73.00 is an important psychological level and prices will not cross this zone until and unless there is important news in global markets.”
In the domestic stock market, the BSE Sensex finished 17.43 points or 0.03 percent lower at 58,279.48, while the broader NSE Nifty fell 15.70 points or 0.09 percent to 17,362.10.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited:
“The market witnessed some volatile moves and an attempt to keep levels around the level of the Nifty 50 Index of 17300. If the market remains above the 17200-17250 level, it is expected to gain momentum leading to upward projection to 17400 -17450 level. Momentum indicators such as RSI and MACD remain positive and market breadth will improve, further bolstering the near-term bullish outlook.”
According to data from the exchange, the foreign institutional investors were net sellers in the capital market on September 6 when they sold shares worth Rs 589.36 crore. Futures on Brent oil, the global oil benchmark, fell 0.01 percent to $72.21 a barrel.