The rupee recovered 15 Paisa against the US dollar on Wednesday, October 13, and settled at 75.37 (provisional), tracking the rise in domestic stocks and the depreciation of the US currency in the global market. In the interbank foreign exchange market, local units opened strongly against the dollar at 75.29 and fluctuated between 75.19 and 75.51. In the early trade session, domestic units rose 26 Paisa against the Greenback to 75.26.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.27% to 94.26. Falling crude oil prices also supported rupee sentiment, according to forex dealers.
Amit Pavali, MD, CR Forex:
“After hitting a low of 75.16 yesterday, the USDINR pair surged towards 75.66. As crude oil recovered strongly from the bottom, it recovered 50 pes from the bottom. This allowed importers to hedge short-term payments. In addition, carry traders who have been betting long on rupees for over a year due to low volatility and high returns are now unleashing their positions.
If the USDINR pair makes constructive moves above this zone on a weekly closing basis, it can be expected to move further upwards towards the 76.00 level in the short term and towards 76.50-77.00 in the medium term. .. However, RBIs that do not require approval to intervene can enter the market and initiate bailout operations at any time. Therefore, it is a “makeup or break situation” for the USDINR pair. “
Kotak Securities Limited’s DVP, Currency Derivatives and Interest Rate Derivatives, Anindya Banerjee:
“The USDINR spot fell 14 Paisa on the back of a rugged influx of companies. At the same time, lower US bond yields and oil prices, and a recovery in the stock market maintained the USDINR cap. Tonight’s focus. Will be the US Consumer Price Index and the US FOMC minutes. Bias continues to rise and the expected range could be in the 74.90-75.70 level on the fly. “
Domestic Stock Market Today:
After scaling a record peak of 60,836.63 during the session, the BSE Sensex settled at 60,737.05, up 452.74 points or 0.75 percent, marking the fifth straight day of victories. Similarly, Nifty rose 169.80 points or 0.94 percent to 18,161.75, touching the daytime record of 18,197.80.
Kotak Securities Ltd, Head of Equity Research (Retail), Shrikant Chouhan
“The market has witnessed a stellar recovery, with both Sensex and Nifty dominated primarily by car and IT stocks, setting record highs. Benchmark Nifty has risen further from its current level. Maintained a strong breakout continuation formation that clearly suggests trends.
We believe short-term charting is still protracted, but the bulls may take a cautious stance between the 18250-18275 levels due to the overgrown daytime rallies. For date traders, the 18100 serves as the primary level of support. On the same, the uptrend wave continues to the 18200-18275 level. “
According to exchange data, foreign institutional investors have offloaded shares worth 278.32 rupees, resulting in a net sale on the capital markets on October 12. Brent crude oil futures, the global oil benchmark, fell 0.40% to $ 83.09 a barrel.