Currency Market Analysis: Rupee flat against Dollar

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Last session analysis: 

Close: 83.26 (-0.4% from the previous close)

Open: 83.27

High: 83.28

Low: 83.23

The Indian Rupee remained within a narrow range amidst mounting concerns about rising oil prices and the ongoing Middle East conflict during previous session. The Reserve Bank of India (RBI) has been actively intervening to prevent the Rupee from sliding to record lows and according to reports has sold U.S. dollars. In economic news, India’s wholesale prices took an unexpected dip, falling by 0.26 percent year-on-year in September 2023.

On Tuesday, the Rupee exhibited consolidation within a tight range and concluded the day slightly higher by 4 paise at 83.26 against the US Dollar, supported by a positive trend in the domestic equity markets. Forex traders noted that the Rupee showed a slight positive bias due to favorable domestic conditions. However, the gains were limited by the strength of the US Dollar and concerns surrounding the ongoing Middle East conflict.

Retail sales in the US posted strong gains, rising 0.7% on the month, surpassing expectations. Excluding autos, sales were up 0.6%. The retail report carries significance for the Federal Reserve as it shapes monetary policy decisions.

Global Markets might show major movement, as U.S President Joe Biden arrives in Israel today.

Most focus on Oil prices.


Previous day data:

Close: 101.41 (+0.15% from the previous close)

Open: 101.51

High: 101.62

Low: 101.19

The British Pound faced a drop as investors turned to the US Dollar following the release of stronger-than-expected US inflation data. The latest UK GDP report for August showed a 0.2% growth, meeting expectations. However, the RICS UK Residential Market Survey house price balance slightly decreased from -68 in August to -69 in September 2023.


Previous session analysis:

Close: 88.04 (+0.31% from the previous close)

Open: 87.86

High: 88.06

Low: 87.77

The Euro stabilized as investors continued to assess the global economic and interest rate outlook. Traders exercised caution amid escalating geopolitical tensions in the Middle East due to the Israel-Palestine conflict. Germany’s wholesale prices recorded a sixth consecutive drop, declining by 4.1% year-on-year in September 2023.


Previous session analysis 

Close: 55.86 (+0.03% from the previous close)

Open: 55.83

High: 56.15

Low: 55.77

The Japanese Yen steadied as increasing tensions in the Middle East boosted safe-haven demand for the currency. Japan’s industrial production dropped by 0.7% month-on-month in August 2023. Japan’s major banks are planning to raise housing loan rates following the Bank of Japan’s policy tweak.