Mumbai: The Indian Rupee The stock closed almost flat on Wednesday but entered 2023 with its worst monthly performance ever, mainly due to a broad strengthening in the US currency.
closed at 82.7225 against the rupee Dollaras compared to 82.71 on Tuesday. The rupee fell nearly 1% in May, its worst monthly decline since December 2022.
Rupee remains stable during the day despite further depreciation Chinese YuanWhich pushed down other Asian currencies and boosted the dollar.
The offshore yuan fell 0.4% to 7.1225 against the dollar, its lowest in six months, after data showed China’s factory activity contracted more than expected in May on weaker demand.
Dollar inflows into equities are likely to be high msci index A trader at a public sector bank said the rebalancing helped offset the negative impact of the strengthening dollar, adding that foreign banks were selling dollars.
Index provider MSCI’s rebalancing will take effect at the close of the market, leading to inflows into equities.
“The possibility of steam breaking below 83 has been capped for some time amid possible wholesale dollar selling by exporters,” said Arnob Biswas, FX Research Analyst at SMC Global Securities.
According to traders, the rupee is also enjoying a familiar technical support around 82.80-82.85 levels, which it has held in the past.
The dollar index rose to 104.51, while the US yield fell. The dollar index is up 2.8% so far this month.
Tracking a decline in US Treasury yields, the one-year rupee forward premium rose to 1.79% from a low of 1.73% earlier this week.
Investors will now track the US House of Representatives debate on debt ceiling legislation and the expected vote on Wednesday’s passage.
The focus will also be on India’s GDP data later in the day and US jobs data coming on Friday.
closed at 82.7225 against the rupee Dollaras compared to 82.71 on Tuesday. The rupee fell nearly 1% in May, its worst monthly decline since December 2022.
Rupee remains stable during the day despite further depreciation Chinese YuanWhich pushed down other Asian currencies and boosted the dollar.
The offshore yuan fell 0.4% to 7.1225 against the dollar, its lowest in six months, after data showed China’s factory activity contracted more than expected in May on weaker demand.
Dollar inflows into equities are likely to be high msci index A trader at a public sector bank said the rebalancing helped offset the negative impact of the strengthening dollar, adding that foreign banks were selling dollars.
Index provider MSCI’s rebalancing will take effect at the close of the market, leading to inflows into equities.
“The possibility of steam breaking below 83 has been capped for some time amid possible wholesale dollar selling by exporters,” said Arnob Biswas, FX Research Analyst at SMC Global Securities.
According to traders, the rupee is also enjoying a familiar technical support around 82.80-82.85 levels, which it has held in the past.
The dollar index rose to 104.51, while the US yield fell. The dollar index is up 2.8% so far this month.
Tracking a decline in US Treasury yields, the one-year rupee forward premium rose to 1.79% from a low of 1.73% earlier this week.
Investors will now track the US House of Representatives debate on debt ceiling legislation and the expected vote on Wednesday’s passage.
The focus will also be on India’s GDP data later in the day and US jobs data coming on Friday.