Rupee Vs Dollar Today: The rupee settled at 74.68 against the dollarThe rupee rose 19 paise against the US dollar on Tuesday, November 2, to settle at 74.68 (provisional), as IPO related inflows supported the domestic unit amid a muted trend in the domestic equity market. At the interbank foreign exchange market, the domestic unit opened at 74.83 against the dollar and registered an intra-day high of 74.66. It witnessed and a low of 74.86 during the trading session. In an early trade session, the domestic unit rose five paise to 74.82 against the greenback.On Monday, November 1, the local unit had settled at 74.87 against the dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06 per cent to 93.94. Mr Amit Pabari, MD, CR Forex:”The domestic equities jumped by almost 1.40 per cent yesterday amid an optimistic environment ahead of the festive season and the opening of big-bang IPOs. After ongoing IPOs, the market will look towards the IPO of One97 Technologies (Paytm) worth $2.5 billion. This will be the biggest-ever IPO in the Indian market, surpassing the previous record of $2 bln set by state-run Coal India Ltd in October 2010. This fundraising through fresh issuance is receding the pressure from rupee.The offsetting dollar inflows from FII/FPIs are expected to remain muted and seasonality wise too rupee usually depreciates in November, although the average depreciation over the last 10 years is one per cent. In a nutshell, rupee is likely to keep its tight range intact from 74.50-75.20 until any big trigger takes the pair comfortably out of this range.”Kshitij Purohit, Lead International & Commodities at CapitalVia Global Research Limited:”Due to the dollar’s strength against the main currencies and massive portfolio equity outflows from the market in October 2021, USD/INR gained 12.5 paise/USD yesterday over its Friday closing. FII equity outflows were around $1.75 billion in October 2021, but IPO and other capital inflows offset dollar demand, keeping the rupee broadly constant around 75.We noticed that oil corporations were buying dollars at a lower rate in the preceding week, resulting in the rupee’s firmer undertone during that time.Last week, the home currency hit a high of 74.74, and further gains to test the 74.60 hard barrier this week is very likely, as private and foreign banks may sell dollars for offshore investment into Indian enterprises through initial public offerings in the coming days. The IPOs of Nykaa, SJS Enterprises, Policy Bazaar, Paytm, and Anand Rathi Wealth are likely to bring in close to $2 billion in the coming days.”Domestic Equity Markets Today:On the domestic equity market front, the BSE Sensex fell 109.40 points or 1.18 per cent to end at 60,029.06, while the broader NSE Nifty fell 40.70 points or 0.23 per cent to 17,888.95.According to exchange data, the foreign institutional investors were net sellers in the capital market on November 1 as they offloaded shares worth Rs 202.13 crore. Brent crude futures, the global oil benchmark, rose 0.27 per cent to $ 84.94 per barrel.
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