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The rupee witnessed heavy volatility in early trade on November 14 and declined by 15 paise to 80.93 against the US dollar in line with a muted trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened on a stronger note at 80.53 against the dollar, then pared profits to quote 80.93, registering a loss of 15 paise compared to its previous close.
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On 11 November, Rupee up by 62 paise to 80.78. closed on against the dollar.
“We expect Rupee to trade in 80.40-80.70 range intra-day with appreciation bias. Testing 80.10 is possible in this swing. We expect to see some more flows in domestic equities by month end on MSCI index re-balancing.” likely,” the IFA Global Research Academy said in a research note.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.49% to 106.80.
Global oil benchmark Brent crude futures rose 0.28% to $96.26 a barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 21.62 points or 0.03% lower at 61,773.42, and the broader NSE Nifty was trading 19.80 points or 0.11% higher at 18,369.50.
Foreign institutional investors (FIIs) were net buyers in the capital market as they bought shares worth Rs 3,958.23 crore on Friday, according to exchange data.
Meanwhile, India’s foreign exchange reserves declined by $ 1.087 billion to $ 529.994 billion for the week ended November 4, the Reserve Bank said on Friday.
On the domestic macroeconomic front, India’s industrial production grew by 3.1% in September, boosted by manufacturing, mining and power sectors, according to official data released on Friday.
Factory production decreased by 0.7% in the previous month (August 2022). It increased by 2.2% in July this year.