Key points:
The rupee (USDINR) stood at 83.70 against the U.S. dollar as of 11:00 a.m. IST, up from its previous close of 83.72. On Wednesday, the currency had hit a record low of 83.7450. Asian currencies rose between 0.1% and 0.8%, while the dollar index (DXY) was at 104 after declining 0.4% on Wednesday.
Picture: Rupee on the rise, trading at 83.808 on the VT Markets app.
Local oil companies also sought dollars, and the general market bias remained towards mild depreciation. This suggests the rupee is unlikely to rise above 83.60 without large inflows.
Meanwhile, dollar-rupee forward premiums rose, with the 1-year implied up 3 basis points to 1.88%, nearing a six-month high. This rise was aided by the decline in U.S. Treasury yields.
You might be interested: Rupee edges higher with Asian peers; India awaits budget
The Reserve Bank of India’s active buying and selling of dollars have kept the USD/INR movements relatively stable. The RBI’s recent interventions have prevented sharp depreciation of the rupee and absorbed dollar inflows, limiting the rupee’s gains.
India’s foreign exchange reserves rose for the third straight week, reaching a lifetime high of $670.86 billion as of July 19. This increase in reserves provides a buffer against external shocks and supports the rupee.
Traderes are now awaiting the U.S. jobless claims data due later in the day, followed by the closely watched jobs report for July, due on Friday. These reports will offer further insights into the U.S. economy and could influence future rate cut expectations.
The rupee’s performance will likely depend on the balance between dollar inflows and RBI interventions. While forward premiums suggest some support for the currency, ongoing import demand for dollars and external economic factors will continue to play a crucial role.
Start trading now — click here to create your live VT Markets account.
Education
Company
FAQ
Promotion
Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.
Our services and information on this website are not provided to residents of certain countries, including the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Global Pty Ltd is authorised and regulated by the Australian Securities & Investments Commission (ASIC) under licence number 516246.
· VT Global is not an issuer or market maker of derivatives and is only allowed to provide services to wholesale clients.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.
· VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Copyright © 2024 VT Markets.