The Indian Rupee's performance against the US Dollar appears to be characterized by a subtle negative inclination, as speculated by foreign exchange traders. This anticipatory trend is rooted in the expectation that the US Dollar may see further strengthening. Notably, the US Dollar displayed resilience following the release of US inflation data that exceeded expectations, thereby exerting downward pressure on the Indian Rupee.
Despite this, the domestic equity market has painted a different picture by surging to all-time highs, contributing to the Rupee's support at lower levels. On the foreign exchange front, the Rupee has been engaged in a narrow trading range. It commenced its trading session at 83.02 against the US Dollar and initially dipped by 4 paise to touch 83.07 compared to its previous closing. In the previous session, the Rupee concluded at 83.03 against the US Dollar, marking a marginal dip of 2 paise.
Foreign exchange experts opine that the Rupee is likely to experience a mild downward bias, primarily driven by expectations of the US Dollar's potential ascent. Further contributing to this scenario are the persistent high levels of crude oil prices and the selling pressures exerted by foreign investors. However, it's worth noting that potential interventions by the Reserve Bank of India, coupled with favorable dynamics within the domestic markets, could offer respite and support the Rupee, especially at lower levels.
Additionally, the Dollar Index saw a slight decline of 0.15 percent, resting at 105.28. In terms of global oil pricing, Brent crude futures, the international oil benchmark, marked a 0.95 percent increase, reaching a value of USD 94.59 per barrel. The upcoming focus in the foreign exchange landscape will be on the consumer sentiment and Empire State manufacturing index figures originating from the United States.
Gaurang Somaiya, a prominent forex and bullion analyst at Motilal Oswal Financial Services, has weighed in on the Rupee's future trajectory. He anticipates that the USDINR (Spot) will adopt a sideways movement and remain within the range of 82.80 to 83.20.
Shifting our attention to the domestic equity landscape, the BSE Sensex managed to advance by 102.84 points or 0.15 percent, reaching a level of 67,621.84. The NSE Nifty followed suit, registering an uptick of 30.25 points or 0.15 percent, to attain a value of 20,133.35. According to exchange data, Foreign Institutional Investors (FIIs) emerged as net buyers within the capital market in the preceding session, making acquisitions worth Rs 294.69 crore.
