Rupee Snaps Winning Streak, Edges Lower To 72.55 Against Dollar

Rupee vs Dollar Today: The rupee snapped its four-session profitable run to edge decrease by 9 paise towards the US greenback on Tuesday, March 16, to settle at 72.55, monitoring muted home equities and stronger American foreign money. At the interbank overseas trade market, the home unit opened at 72.46 towards the greenback and registered an intra-day excessive of 72.37. It witnessed a low of 72.64. In an early commerce session, the native unit gained 5 paise to 72.41 towards the buck supported by optimistic home equities. The rupee closed at 72.55, registering a fall of 9 paise over its earlier closing. On Monday, March 15, the native unit settled at 72.46.

The greenback index, which gauges the buck’s energy towards a basket of six currencies, climbed 0.04 per cent to 91.87. 

What analysts say

”Flows from REC hit the market yesterday bringing USDINR right down to beneath 72.50. March is a month of inflows which can proceed and make USDINR susceptible to extra on draw back as IT Companies promote, flows from Corporates and IPOs hold hitting the market. Anything close to to 72.75 ought to be a great promote for the day whereas 72.25 ought to be a great purchase,” mentioned Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors. 

“Rupee depreciated amid strong dollar and muted domestic markets. Further, rupee slipped on disappointing macroeconomic data. Market remained cautious ahead of major central banks monetary policy meetings. However, sharp downside was prevented on softening of crude oil prices.,” mentioned Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

”Crude oil costs slipped on concern about gradual tempo of vaccination within the EU after Germany, France and Italy joined different European nations to hit pause on the AstraZeneca COVID-19 vaccine. Rupee might commerce within the vary of 72.25 to 73.00 in subsequent couple of classes,” he added.

“After four days of winning streak, rupee fell following firmer dollar ahead of the Federal Reserve’s key monetary policy meeting,” mentioned Dilip Parmar, Research Analyst, HDFC Securities.

“All eyes will remain on the Federal Open Market Committee (FOMC) meeting outcome announcement tomorrow as comments from the Fed will be important for the dollar movement and risk sentiment,” he mentioned.

Additionally, on the home fairness market entrance, the BSE Sensex ended 31.12 factors or 0.06 per cent decrease at 50,363.96, whereas the broader NSE Nifty fell 19.05 factors or 0.13 per cent to 14,910.45.

”FMCG and know-how shares saved the market as we speak, in any other case the Nifty/Sensex would have reached 14,800/50000 once more resulting from weak point in financial institution shares and steel firms. The international market was secure and long-term bond yields have been additionally buying and selling within the short-range. We consider that the markets would stay on the sidelines till the FOMC assembly is accomplished,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

According to trade knowledge, the overseas institutional traders have been internet sellers within the capital market as they offloaded shares value Rs 1,101.35 crore on March 15. Meanwhile, Brent crude futures, the worldwide oil benchmark, fell 1.51 per cent to $ 67.84 per barrel.