The rupee appreciated by 5 paise to 83.65 per US dollar, supported by a weaker dollar index at 104.29 and RBI intervention. Forex reserves hit $666.854 billion. Sensex fell 264.92 points; Nifty 88.10 points. FIIs invested ₹1,506.12 crore. Brent crude traded at $83.20 per barrel. Previous rupee low was 83.70. Macroeconomic changes and weak US data impacted the dollar.
India's forex reserves reached an all-time high of $666.85 billion as of July 12, according to data from the Reserve Bank of India. Foreign currency assets (FCAs) also increased by $8.36 billion to $5585.47 billion. Gold reserves expanded by $1.23 billion to $58.66 billion, while SDRs increased by $76 million to $18.11 billion.
The rupee traded between 83.62-83.65 on Friday, impacted by foreign fund inflows and importers' dollar demand, closing at 83.63 Thursday due to crude prices. Analyst Amit Pabari remains optimistic. Brent crude was $84.76. BSE Sensex and NSE Nifty dropped. Dollar index was 104.24. FIIs bought Rs 5,483.63 crore in shares. ECB might cut rates; European currencies fell.
Budget 2024: As Finance Minister Nirmala Sitharaman prepares to present the Budget on July 23, a survey by ET Online sheds light on the state of the Indian economy. The good is that inflation is under control, with over 34% of nearly 9,500 respondents highlighting it as a positive factor. However, global uncertainty and coalition pressures are seen as bad, while the biggest concern is jobless growth, with over 51% identifying it as the most significant risk.
The Indian rupee is anticipated to experience a minor respite as the dollar index decreases to a near four-month low. Speculation surrounds the rally in the Japanese yen and potential intervention by the Bank of Japan. Market expectations of Fed rate cuts are on the rise, with foreign investors showing interest in Indian shares and bonds.
The yen has posted several outsized moves in recent days, appreciating sharply on Thursday and Friday from 38-year lows of 161.96 per dollar, sudden rallies which market participants said had the signs of currency intervention
Stronger chances of a September rate cut by the Federal Reserve have pressured US yields to come down. The US 10- year bond yield was at 4.17%, versus 4.20% on Monday. Lower US interest rates typically lead to a softer US dollar as global investors seek higher returns in emerging market assets.
Rupee fell 4 paise to 83.55 against the US dollar due to strong American currency and high crude prices. Forex traders and RBI measures, including foreign fund inflows and high FX reserves, partially restrained the fall. Brent crude at $85.14, dollar index 104.21, weak US CPI data, inflows, and record-high FX reserves noted.
India's foreign exchange reserves reached a record high of $657.16 billion as of July 5, marking a significant increase of $5.16 billion from the previous week. This surge was driven by a rise in Foreign Currency Assets (FCAs), which grew by $42.29 billion to $577.11 billion. FCAs include holdings in currencies like the euro, pound, and yen, adjusted for their exchange rate fluctuations against the US dollar.