The rupee rose for the second straight day, rising 11 Paisa against the US dollar on Thursday, October 14, and settled at 75.26 (provisional) amid bulk purchases of domestic stocks and a weaker US currency. Both have strengthened investor sentiment. In the interbank forex market, domestic units opened at 75.27 against the dollar and moved between 75.20 and 75.37 during the trading session. In the early trade session, domestic units won 12 paisas to 75.25 against the greenback.
The domestic currency was settled at 75.26 against the US currency, recording an increase of 11 Paisa from the previous closing price. On Wednesday, October 13, local units settled at 75.37 against the dollar. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.28 percent to 93.81.
According to Forex traders, the influx of new foreign capital also helped domestic units record a rise for the second straight day. However, according to traders, soaring oil prices in the international market have limited the rise in the rupee.
” …. USDINR pairs should be modified towards 74.80 and 74.50 with an 80% chance. The RBI, a key player in rupee management, has so far done a remarkable job by not intervening too aggressively in selling dollars and letting it be driven by the power of the market. ” Said Dr. Amit Pabari of CR Forex.
“But given that the huge amount of inflows is paving the way, it should be noted whether it remains active on the downside. Overall, the medium-term trend of the USDINR pair remains bullish. But to be healthy and steady, we need to make corrections, “added Pavali.
Currency Desk, Emkay Global Financial Services:
“Although there is a setback witnessed at DXY, especially after the Fed’s minutes suggest that central bankers may begin to taper, there is still a risk that crude oil prices will skyrocket for USDINR. The USDINR spot is 75. The view is positive as long as it is traded beyond.
Next week will be fairly light in terms of economic data, but will focus on IPO-related announcements that could weigh on the USDINR spot. So next week’s range could be 74.8-75.70 with lateral bias. “
Kotak Securities Limited’s DVP, Currency Derivatives and Interest Rate Derivatives, Anindya Banerjee:
“The USDINR spot fell 11 Paisa at 75.25 on the back of rising stock prices and weak US index after real yields in the US fell. Next week, USDINR fell between 75.00 and 75.80 levels on October futures. You may continue to see more range bound price actions at.
In order for the USDINR to fall below 75.00 or challenge 76.00, the US dollar index must fall or the stock market must fall. “
Domestic Stock Market Today:
On the domestic stock market side, the BSE Sensex ended at 61,305.95, up 568.90 points or 0.94 percent, while the broader NSE Nifty jumped 176.80 points or 0.97 percent to 18,338.55.
Shri Kant Chohan, Head-Equity Research (Retail), Kotaku Securities:
“The second quarter 2010 results season began with large-cap IT companies reporting sound numbers. The fall in rupees has also played a role in keeping IT stocks green. In all events, the market continues to recover, with both BSE Sensex and Nifty rising more than 2.5% each during the shortened week.
The Small & Midcap Index outperformed during the week. The BSE Midcap Index rose 3.6% and the BSE Smallcap Index rose 2.8%. “
According to foreign exchange data, foreign institutional investors emerged as net buyers on the capital markets on October 13 after buying shares worth Rs 937.31. Brent crude oil futures, the global oil benchmark, rose 1.30 percent to $ 84.26 a barrel.