Despite a rate hike from the Federal Reserve, the US dollar index declined yesterday on account of weaker-than- expected retail sales and CPI data, said the report of HDFC Bank's Treasury Research Team.
Earlier, the rupee resumed lower by 6 paise to 64.49 as against yesterday's closing level of 64.43 per dollar at the Interbank Foreign Exchange (Forex) Market.
The rupee resumed higher by 9 paise to 64.35 per dollar as against last Friday's closing level of 64.44 per dollar at the Interbank Foreign Exchange (Forex) Market.
Surge in the rupee in the past few sessions was on account of FII inflows into equities and weak dollar in the overseas market.
The rupee resumed lower at 64.91 per dollar as against the yesterday's closing level of 64.89 per dollar at the Interbank Foreign Exchange (Forex) Market. Later, it recovered on dollar selling by banks to 64.80 before falling again to 64.94 at 1100 hrs.
According to the research firm GFMS, smuggled gold supply had fallen between November 2016 and mid-March 2017.
The rupee made a tentative recovery of 16 paise at 64.68 against the dollar at the start of the session after banks and exporters hit the sale button for the US currency.
After opening stronger against the dollar, the Indian rupee pared its gains on Wednesday as state-owned banks bought the dollar heavily on behalf of the Reserve Bank of India, dealers said.
Since the start of the calendar year the rupee has gained nearly 6 percent against the dollar and 2 percent against emerging market currencies, largely on account of glad tidings on the economy and political fronts. Post demonetisation, it has gained from a strong showing by the BJP in the U.P. election and from parliament clearing hurdles for a GST launch. Crude oil prices continue to remain range-bound, with the OPEC nations curtailing oil production.
Indian rupee fell to nearly a one-month low on Tuesday as demand for the dollar strengthened by foreign institutional investors looking to exit their positions or hedge their exposure.
Despite the dollar gaining against other currencies, a positive stock market and increased inflow from foreign portfolio investors supported the rupee.
"Overall the rupee has been strengthening this year due to higher foreign fund inflows due to reforms like GST. But now exporters are also selling dollars on one hand and they are started covering (buying dollars) their position on the other," FirstRand Bank Treasury Head Harihar Krishnamurthy told PTI.
The rupee resumed higher at 64.12 a dollar as against the last weekend's level of 64.24 at the Interbank Foreign Exchange market and moved in a range of 63.9975 and 64.19 before quoting at 64.18 at 1100 hours.
The rupee resumed higher at 64.42 against the dollar as against yesterday's closing level of 64.44 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to a 3-week high at 64.27, before quoting at 64.29 per dollar at 1100hrs, showing a gain of 15 paise.
The rupee resumed lower at 64.64 per dollar as against its last closing level of 64.56 at the Interbank Foreign Exchange (Forex) Market. It dropped further to 64.67 in view of initial dollar demand from banks and importers on the back of higher greenback in the overseas market.
Capital outflows, in small lots, also weighed on the rupee while rally in domestic equities restricted the rupee fall to some extent, a forex dealer said.
The rupee opened almost flat at 64.42 as against last Thursday's closing level of 64.41 per dollar at the Interbank Foreign Exchange (Forex) Market here today.
Spot gold was up 0.5 percent at USD 1,291 per ounce as of 0239 GMT, after hitting its highest since early November at USD 1,295.42.
Since the start of this year, the rupee has had a steady appreciation in line with other emerging market currencies, Kotak Institutional Equities said in a research note.
The rupee resumed lower at 64.65 and dropped further to 64.69 following initial dollar demand from banks. However, it bounced back to 64.56 at 1100 hours after stocks showed some traction.
I expect the USD-INR pair to trade in a range of 64.45-64.65/dollar, says Bhaskar Panda of HDFC Bank
I expect the USD-INR pair to trade in a range of 64.45-64.65/dollar, says Bhaskar Panda of HDFC Bank.
The rupee opened marginally lower at 64.30 against last Friday's level of 64.28 here today. It moved in a range of 64.50 to 64.30 during morning deals before quoting at 64.49 at 1025 hours. Meanwhile, the dollar index was trading steady at 101.23 against a basket of six currencies.
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