At the interbank foreign exchange, the rupee opened at 84.23 against the U.S. dollar. File
| Photo Credit: Reuters
“A strong greenback against major rivals overseas and unabated foreign fund outflows dented market sentiment,” Forex traders said.
Market participants also expect the U.S. Fed to announce a rate cut in a meeting scheduled later this week, with further easing by up to 100 basis points projected for 2025.
At the interbank foreign exchange, the rupee opened at 84.23 against the U.S. dollar. During the session, the local currency oscillated between a high of 84.15 and a low of 84.31. It finally settled at 84.30 (provisional), a loss of 21 paise against its previous close.
On Tuesday (November 5, 2024), the rupee settled 2 paise higher at 84.09 against the U.S. dollar.
“We expect the rupee to trade with a negative bias on strength in the U.S. dollar and FII outflows. However, a rise in risk appetite in global markets and a decline in commodity prices may support the rupee at lower levels. Any intervention by the RBI may also support the rupee at lower levels. Investors may remain cautious ahead of the FOMC meeting outcome later this week. The USD/INR spot price is expected to trade in a range of 84.10 to 84.40,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 1.34% higher at 104.80. The index rose after Mr. Trump was poised to become the next U.S. President.
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Brent crude, the global oil benchmark, fell 1.43% to $74.45 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex surged 901.50 points, or 1.13%, to close at 80,378.13, while Nifty advanced 270.75 points, or 1.12%, to settle at 24,484.05 points.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday (November 5, 2024), as they offloaded shares worth ₹2,569.41 crore, according to exchange data.
Meanwhile, India’s services PMI recovered from its ten-month low in September to reach 58.5 in October supported by strong expansions in output and new business, which in turn boosted job creation.
The seasonally adjusted HSBC India Services Business Activity Index increased from 57.7 in September to 58.5 in October, as robust sales pipelines and strong demand conditions supported the upturn in business activity.
Published – November 06, 2024 04:52 pm IST
