RUPEE IN FOCUS
On Tuesday, the Indian currency opened at 95.73 per US dollar, compared with Monday’s (August 24) close of 95.75. In addition, the 10-year bond yield dipped to 6.94%.
As per a Reuters report, the domestic benchmarks recorded increases in the last session as global crude prices fell, while volatility continued on the day that marked the inaugural monthly Nifty 50 derivatives expiry using the new closing-auction method.
Foreign portfolio investors (FPIs) continued to be net purchasers of Indian equities for the second consecutive session on Tuesday, with inflows totalling ₹15.94 billion. Domestic institutional investors’ (DII) inflows were reported at ₹2.30 billion, as per the provisional data from the NSE.
The rupee is still encountering difficulties due to the continuous hedging demand from domestic corporations and the irregular maturity of derivative contracts, further exacerbated by consistently elevated oil prices.
FACTORS AT PLAY TODAY
The central bank’s regular interventions have played a significant role in maintaining the rupee as one of the most stable currencies in Asia during the last fortnight, ensuring it remains within a tight range of less than 30 paisa, specifically between 95.45 and 95.75.
Meanwhile, crude oil saw a major slump in prices, as the price of the benchmark, Brent Crude, fell below the $87 mark as talks between Iran and Oman are indicating an alternative way out of the ongoing Strait of Hormuz crisis.
Furthermore, another major key factor influencing the currency is gold. The yellow metal, after making gains over the recent past, has managed to hold the gains in today’s session so far.
The rupee is still encountering difficulties due to the continuous hedging demand from domestic corporations and the irregular maturity of derivative contracts, further exacerbated by consistently elevated oil prices.
The central bank’s regular interventions have played a significant role in maintaining the rupee as one of the most stable currencies in Asia during the last fortnight, ensuring it remains within a tight range of less than 30 paisa, specifically between 95.45 and 95.75.
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(Edited by : Juviraj Anchil)
