Rupee Vs Dollar Today: The rupee settled at 75.03 versus the dollarThe rupee decreased by 7 paise against the United States dollar on Wednesday, October 27, to settle at 75.03 due to month-end dollar demand from the importers and tracking a muted trend in domestic equities.
At the interbank forex market, the domestic currency opened at 75.02 and registered an intra day high of 74.90.
It witnessed a low of 75.05 during the day trade.
In an early trade session, the regional unit slipped 6 paise to 75.02 against the greenback.
The regional system lastly settled at 75.03 a dollar, down seven paise, against its previous close of 74.96.
The dollar index, which gauges the greenback's strength against a basket of 6 currencies, was trading 0.02 per cent up at 93.97.
According to analysts, a stronger dollar in abroad markets and thought RBI intervention ahead of IPOs likewise weighed on the local currency.
What experts say: Mr Amit Pabari, MD, CR Forex: The premiums for the end of Aug and Sep 2022 are presently estimating near 8th October levels of 2.93 and 3.21.
This recommends premiums have not tipped over the last 20 days.
The factor behind the raised premium is RBI's liquidity tightening up fears.
The central bank has likewise been treking the quantum of its variable rate reverse repo operations since August in phases, and by December the quantum will be Rs.
6 lac crores.Moreover, rising commodity costs have increased the expectation of future inflation which is also letting the forward curve to get steeper.
From the United States front, the yield curve is flattening as traders are discounting Fed's early rate walking and thus rates of interest differential is preferring the premiums.
This could remember the bring traders to set up long positions and could assist Rupee to acquire versus USD over the short term.
Anindya Banerjee, DVP, Currency Derivatives - & Rate Of Interest Derivatives at Kotak Securities: Another uninspired day in USDINR with main market FPI flows being offset by thought RBI intervention and need for US Dollars from oil marketing business.
As an outcome, the spot closed partially greater at 75.02, up 6 paise.Over the near term, IPO-related FPI circulations will stay heavy and that in addition to carry trade may keep USDINR capped near 75.20/ 25 levels.
But strong US Dollar Index and RBI intervention may avoid a sharp slide.
A variety of 74.75 to 75.25 might unfold over the near term.
Domestic Equity Markets Today: On the domestic equity market front, the BSE Sensex ended 206.93 points or 0.34 per cent lower at 61,143.33 while the broader NSE Nifty declined 57.45 points or 0.31 percent to 18,210.95.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities: After a strong pullback rally, profit-taking came to the fore in a volatile market and benchmark Nifty took resistance near the 18350 level.
Post the muted opening, the index made a number of attempts to clear the 18350 hurdle but due to absence of follow-through buying, the marketplaces saw a technical selloff in late afternoon trades.Technically, the index has formed a small bearish candle near the 18350 resistance level however at the very same time, on intraday charts, it has preserved a higher bottom series development.
Ahead of regular monthly F&O expiration, volatility might continue, hence level-based trading would be the perfect strategy for day traders.
According to the exchange information, the foreign institutional investors were net sellers in the capital market on October 26 as they offloaded shares worth Rs 2,368.66 crore.
Oil costs eased in worldwide markets with the benchmark Brent crude declining by 1.08 percent to $ 85.47 per barrel