The currency market drew support from positive domestic equity openings alongside a decline in the dollar index to 101.75. Brent crude futures also fell by 1.05 per cent to USD 116.09 per barrel, easing immediate import pressure. Nevertheless, pressure persisted as foreign institutional investors offloaded equities worth Rs 943.60 crore on Thursday. Analysts project the USDINR trading band to remain confined between 94.75 and 95.75 amid ongoing global uncertainty.
Key points
Market analysts forecast the USDINR exchange rate will fluctuate within an immediate rang…: Market analysts forecast the USDINR exchange rate will fluctuate within an immediate range of 94.75 to 95.75.
Central banks in Europe and Japan held benchmark interest rates unchanged, providing stea…: Central banks in Europe and Japan held benchmark interest rates unchanged, providing steady international monetary policy backdrop.
The International Monetary Fund advised that currency flexibility must remain India's pri…: The International Monetary Fund advised that currency flexibility must remain India's primary policy buffer against energy shocks.
Sources checked by our analysis pipeline: 1
According to forex traders, sustained inflows and an easing of the oil import burden would provide a stronger foundation for rupee appreciation. The immediate operating range for USDINR is 94.75-95.75.
At the interbank foreign exchange market, the rupee opened at 95.21, then gained ground and touched 95.19 against the US dollar, registering a rise of 7 paise over its previous close.
On Thursday, the rupee consolidated in a narrow range and ended 2 paise higher at 95.26 against the US dollar.
"The Indian rupee opened flat to positive on weak dollar and softening of US treasury yields. However, weak Asian markets and a surge in crude oil prices capped sharp gains. ECB and Bank of Japan kept interest rates unchanged," said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.75, lower by 0.27 per cent.
Brent crude, the global oil benchmark, was trading lower by 1.05 per cent at USD 116.09 per barrel in futures trade.
The benchmark index faced significant selling pressure throughout the trading day, culminating in a notable retreat by the closing bell. Market participants witnessed widespread weakness that pulled the island's primary equity gauge down sharply during the session. The downward momentum reflects a challenging environment for local shares across the entire exchange.
Mainland bourses dropped to a one-year low after overnight Wall Street declines spread worries about the profitability and high infrastructure costs of artificial intelligence. The resulting retreat dragged Chinese hardware and semiconductor equities sharply lower, despite resilient trading across Hong Kong and consumer-focused industries. Investors increasingly rotated into defensive domestic segments to limit exposure to the broader regional downturn.
Investor sentiment turned sharply negative as mounting profitability pressures overshadowed the renewable energy firm's operational momentum. The market selloff was triggered by deteriorating profit margins and lower full-year operational guidance. These margin constraints have prompted several brokerage houses to swiftly downgrade their price targets despite robust delivery volumes.