Rupee Weakens For 3rd Straight Day To 75.52 Against Dollar Amid Crude Oil Prices

Rupee Vs Dollar Today: The rupee settled at 75.52 against the dollarContinuing its losing streak for session in a row, the rupee weakened by 16 paise against the US dollar on Tuesday, October 12, tracking a stronger American currency and firm crude oil prices. At the interbank foreign exchange market, the domestic unit opened at 75.41 and registered an intra-day high of 75.16. It witnessed a low of 75.66. In an early trade session, the local unit slipped six paise to 75.42 against the greenback.On Monday, October 11, the local unit declined by 37 paise to close at a 15-month low of 75.36 against the US dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent up at 94.33.What analysts sayAnindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Limited:”The USDINR spot closed 16 paise higher at 75.51, the highest level since July 2020, in a volatile session of trading. There may have been intervention from RBI at higher levels, coupled with lumpy corporate flows which pushed prices lower but rising oil prices and firming US bond yields kept bids alive. Over the near term, bias remains upward.”Mr Amit Pabari, MD, CR Forex:”Rupee has been toiled with the double whammy effect of elevated crude oil prices and a strengthened dollar. Energy crunch across the Asia to Europe belt have led to sharp rise in oil prices and renewed concerns of hot-steaming inflation. Being India importing nearly 80 per cent of its oil needs, high prices result in increased imported inflation thereby putting rupee under pressure.Going ahead, investors shall key an eye on India’s September CPI Inflation numbers and the Industrial Output for August due today for further drive in rupee. The only positive for rupee remains the upcoming IPO by nearly 35 companies looking to raise approximately Rs 800 billion from Oct-Dec. On flip side, the roof of 75.50-75.60 is acting as a stiff resistance, if broken then we could see a move towards 75.80 to 76.00 levels over the near term. It will be watchful to see whether RBI intervenes to protect rupee beyond these levels or not.”Domestic Equity Markets Today:On the domestic equity market front, the BSE Sensex ended 148.53 points or 0.25 per cent higher at 60,284.31, while the broader NSE Nifty climbed 46.00 points or 0.26 per cent to 17,991.95.Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Limited: ”It was a volatile session for the markets but bulls gained strength in late trades as Nifty once again breached the 18,000 mark before ending a tad lower below the psychological mark. On daily and intraday charts, Nifty has formed a promising higher bottom formation. The intraday structure suggests 17850 could be the trend decider level for the bulls. Above the same, the uptrend formation is likely to continue up to 18050-18125 levels.”According to exchange data, the foreign institutional investors were net sellers in the capital market on October 11 as they offloaded shares worth Rs 1,303.22 crore. Brent crude futures, the global oil benchmark, advanced 0.29 per cent to $ 83.89 per barrel.



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