Indian Rupee: In A Narrow Range

The Indian rupee commenced flat against the dollar in early trades on Friday, 04 May 2018 and edged up slightly as the greenback weakened overseas ahead of monthly US jobs report and China-US trade meet outcome. Besides selling of the American currency by exporters and banks, weakness in the dollar against other currencies as senior Chinese and US officials met in Beijing for a second day of trade talks, supported the domestic unit. However, weakness in local shares limited gains in the domestic unit.

The domestic currency opened at Rs 66.64 against the dollar and inched up to a high of 66.6250 before sliding back to a low of 66.6950 so far during the day. In the spot currency market, the Indian unit was last seen trading at 66.69. Yesterday, the rupee had ended marginally 2 paise higher at 66.64 against the US dollar despite a caution among investors ahead of trade talks between China and the US.

Domestic stocks nudged lower in early trade as most Asian stocks fell. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 27.18 points or 0.08% at 35,075.96. The Nifty 50 index was down 19.75 points or 0.18% at 10,659.90. The market sentiment was hit by data showing that foreign funds and domestic institutional investors were net sellers of Indian stocks yesterday, 3 May 2018. The trading activity showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 148.42 crore yesterday, 3 May 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 578.92 crore yesterday, 3 May 2018, as per provisional data.

Overseas, most Asian stocks were trading lower as investors awaited the April jobs report out of the US. The Nikkei in Japan remained closed for a holiday. US stock benchmarks ended off their lows yesterday, 3 May 2018 and the Dow ended higher, in choppy action as investors awaited a key reading of monthly employment. The Dow Jones Industrial Average rose 5.17 points, or less than 0.1%, to 23,930.15. The S&P 500 index declined 5.94 points, or 0.2%, to 2,629.75. The Nasdaq Composite Index closed 12.75 points, or 0.2%, lower at 7,088.15.

Meanwhile, the dollar slipped against the other major Asian currencies on Friday morning after it jumped to this years high on Thursday. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.21, down 0.08%. The greenback reached this years new high on Thursday at 92.66, then slipped back to the 92.2 level on Friday.