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Reuters
5 days ago
- Business
- Reuters
Rupee ends nearly flat, wedged between importer dollar bids and Asia FX uptick
MUMBAI, May 28 (Reuters) - The Indian rupee ended nearly flat on Wednesday, as the impact of month-end dollar demand from importers was offset by an uptick in regional peers. The rupee closed at 85.36 against the U.S. dollar from 85.33 in the previous session. The unit weakened to 85.70 earlier in the session, but recouped most losses as the dollar index eased. Traders built up intra-day shorts on the rupee in anticipation of outflows related to an equity block deal but the price action indicated that the flows did not materialise as expected, a trader at a Mumbai-based bank said. British American Tobacco sold a $1.5 billion stake in Indian consumer goods company ITC ( opens new tab on Tuesday. India's benchmark equity indexes closed slightly in the red. The dollar index was last at 99.5, little changed on the day while the Korean won and Thai baht led gains in Asian currencies with a 0.4% rise. The minutes of the Federal Reserve's May policy meeting are due later in the day and will be in focus for cues on policymakers' thinking on the future trajectory of interest rates amid uncertainty spurred by U.S. trade policies. "The details will be important in providing a sense of the level of conviction on the Fed's willingness to remain on the side-lines in order to assess the uncertainty created by trade tariffs," MUFG Bank said in a note. Interest rate futures are currently pricing in nearly two U.S. rate cuts over 2025. India's overnight index swaps have priced in at least two rate cuts by the Reserve Bank of India as well, supporting a bullish outlook for the country's sovereign bonds.
United News of India
26-05-2025
- Business
- United News of India
Rupee down 20 paise against USD
Mumbai, May 20 (UNI) Erasing gains in last couple of sessions, the Rupee on Tuesday dropped 20 paise to close at 85.60 against USD on rising demand for US Dollar from foreign banks and importers, dealers at the Forex Market said. The Rupee remained weak throughout the session, as it fell 2 paise at 85.42 in early trade. During the day it was slipped 20 paise to close negative at 85.60 as compared to its previous close. The Rupee lost the ground on firm dollar against other world currencies, alongwith sliding equity market, dealer informed. The Rupee recorded days high and low at 85.38 and 85.65 respectively, dealer added. UNI NV GNK
Reuters
26-05-2025
- Business
- Reuters
Rupee set to extend rally, riding momentum in Asia FX
MUMBAI, May 26 (Reuters) - The Indian rupee is poised to kick off the week on a positive note, extending Friday's rally, buoyed by a strength in Asian currencies which included the Chinese yuan's surge to a seven-month high. The 1-month non-deliverable forward indicated that the rupee will open in the 84.98-85.02 range per U.S. dollar on Monday, from its Friday close of 85.2125. The currency had surged 0.92% on Friday, its best single-day performance in over two years. Friday marked an unexpected turnaround in the rupee's performance. Until then, the Indian currency had largely missed out on the rally enjoyed by its Asian peers. "Difficult to pinpoint what exactly changed on Friday. In hindsight, it may have been the lack of dollar payments that had been plaguing the rupee, the relentless up move in Asia and finally the collective wisdom that a short (on dollar/rupee) offers value, " a currency trader at a Mumbai-based bank said. However, despite Friday's rally, the rupee remains an underperformer among Asian FX this month. While the rupee is down 0.8% in May, the Korean won, Thai baht, and Indonesian rupiah have climbed between 2.5% and 5.5%. Meanwhile, the offshore Chinese yuan has strengthened 1.5% to 7.1650 against the dollar. The dollar weakened against its major peers and Asian currencies on Monday, with the dollar index (=USD) slipping 0.3% to 98.76 — not far from its year-to-date low. Expectations of FX revaluation have supported Asian currencies, while U.S. fiscal concerns continue to weigh on the dollar. Meanwhile, U.S. President Donald Trump on Sunday backed off his threat to speed up 50% tariffs on imports from the European Union, agreeing to extend his deadline for trade talks until July 9. The rapid de-escalation — just two days after the initial threat — underscores the unpredictability and volatility of U.S. trade policy. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.14; onshore one-month forward premium at 13.5 paisa ** Dollar index down at 98.72 ** Brent crude futures up 0.1% at $64.8 per barrel ** Ten-year U.S. note yield at 4.51% ** As per NSDL data, foreign investors sold a net $634.6 million worth of Indian shares on May 22 ** NSDL data shows foreign investors sold a net $53.4 million worth of Indian bonds on May 22
United News of India
22-05-2025
- Business
- United News of India
Rupee improves 2 paise against USD
Mumbai, May 22 (UNI) The Rupee on Thursday rose marginally by 2 paise at 85.66 in early trade on selling of US Dollar by bankers and exporters at the Forex Market informed. Sliding 8 paise in the previous session, the domestic unit slightly improved on weak Dollar against other world currencies amid negative opening in stock market, dealer informed. The Rupee recorded intra days high and low at 85.63 and 85.69 respectively, dealer added. UNI NV GNK
United News of India
22-05-2025
- Business
- United News of India
Rupee drops 8 paise against USD
Mumbai, May 21 (UNI)The Rupee on Wednesday lost another 8 paise to close at 85.68 against USD on brisk demand for US Dollar from foreign banks and importers, dealers at the Forex Market said. The Rupee that opened on a flat note at 85.60 remained under pressure throughout the session. Finally, finished at 85.68, sliding 8 paise as compared to its previous close. The Rupee fell owing to a strong dollar against other world currencies, along with a rebounding equity market, a dealer informed. The Rupee recorded day's high and low at 85.58 and 85.72 respectively, the dealer added. UNI NV BD
