18-Aug-2023
2 mins read
The global currency market is a tapestry of events that impact various currencies daily. Today, the spotlight falls on the Indian Rupee, which witnessed a positive adjustment against the US dollar. Here’s a deep dive into what happened:
A Positive Open for the Rupee
The Indian rupee started off its day on a brighter note, appreciating by 13 paise against the US dollar. As per the recent data, the rupee opened at 83.02, improving from its previous close at 83.15.
A Step Back for the Greenback
One significant factor that played into the rupee’s favour was the pullback of the US dollar. The US dollar index, which gauges its strength against six major currencies from developed markets like the yen and euro, receded by 0.14%, settling at 103.26. This came after it peaked at a two-month high of 103.59 overnight.
The US Dollar’s Winning Streak
Despite its recent setback, the US dollar is on a victory lap. It’s currently on track for its fifth consecutive winning week against its major counterparts, marking its longest winning streak in over a year.
A Brief on US Yields
The 10-year US yield, a significant indicator in the financial market, took a dip to 4.25%. Just a while ago, it had soared to a 10-month high, touching 4.33%.
The Rupee’s Struggle
It’s important to note that just a day before, the rupee had hit a record low, closing at 83.15 against the dollar.
US Economy: Signs of Stability
The US economic scenario for July indicates robust beginnings for Q3. Industrial production, retail sales, and housing data were all promising. However, these robust numbers have triggered concerns. Investors are now speculating that the high US interest rates might stay for an extended period, with more rate hikes possibly on the horizon.
Oil Prices on the Rise
In the world of commodities, Brent crude futures saw a slight uptick of 0.07%, pricing at $84.18 per barrel. The US West Texas Intermediate crude also enjoyed a gain, up by 0.26% to reach $80.60 a barrel.
A Glimpse of the Indian Equity Market
Back home, the Indian equity benchmark indices, notably the Sensex and Nifty, faced a downward trend in the pre-opening session.
Foreign and Domestic Investments in India
Shifting our gaze to investments, Thursday wasn’t the best day. Foreign institutional investors (FIIs) pulled out a net amount of Rs 1,510.86 crore from Indian stocks. Simultaneously, Domestic Institutional Investors (DIIs) also retracted net selling shares worth Rs 313.97 crore.
In summary, while the rupee witnessed a brief respite today, the interplay of global factors continues to impact its trajectory. Staying updated on these developments is key to understanding the intricacies of the financial world.