AGL 38.50 Increased By ▲ 0.93 (2.48%)
AIRLINK 130.99 Decreased By ▼ -1.51 (-1.14%)
BOP 5.60 Decreased By ▼ -0.04 (-0.71%)
CNERGY 3.85 Increased By ▲ 0.08 (2.12%)
DCL 8.66 Decreased By ▼ -0.21 (-2.37%)
DFML 40.80 Decreased By ▼ -0.20 (-0.49%)
DGKC 88.79 Decreased By ▼ -1.37 (-1.52%)
FCCL 35.30 Increased By ▲ 0.22 (0.63%)
FFBL 66.45 Decreased By ▼ -0.05 (-0.08%)
FFL 10.56 Increased By ▲ 0.41 (4.04%)
HUBC 109.20 Increased By ▲ 2.80 (2.63%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.80 Decreased By ▼ -0.06 (-1.23%)
KOSM 7.03 Increased By ▲ 0.18 (2.63%)
MLCF 42.52 Increased By ▲ 0.72 (1.72%)
NBP 59.48 Increased By ▲ 0.90 (1.54%)
OGDC 183.80 Increased By ▲ 2.55 (1.41%)
PAEL 25.60 Decreased By ▼ -0.10 (-0.39%)
PIBTL 5.90 Increased By ▲ 0.07 (1.2%)
PPL 147.81 Decreased By ▼ -0.59 (-0.4%)
PRL 23.51 Increased By ▲ 0.29 (1.25%)
PTC 16.48 Increased By ▲ 1.24 (8.14%)
SEARL 69.50 Increased By ▲ 0.71 (1.03%)
TELE 7.21 Decreased By ▼ -0.03 (-0.41%)
TOMCL 35.75 Decreased By ▼ -0.25 (-0.69%)
TPLP 7.84 Increased By ▲ 0.44 (5.95%)
TREET 14.25 Increased By ▲ 0.01 (0.07%)
TRG 50.51 Decreased By ▼ -0.34 (-0.67%)
UNITY 26.81 Increased By ▲ 0.41 (1.55%)
WTL 1.23 Increased By ▲ 0.02 (1.65%)
BR100 9,819 Increased By 51.2 (0.52%)
BR30 29,774 Increased By 373.8 (1.27%)
KSE100 92,339 Increased By 400.8 (0.44%)
KSE30 28,844 Increased By 99.8 (0.35%)

MUMBAI: The Indian rupee traded in a narrow range on Thursday, held in check by strong domestic dollar demand from oil importers, even as the greenback weakened.

The partially convertible rupee ended at 79.88 per US dollar versus its previous close of 79.8075. The currency has moved between a 79.68-79.9125 range all week.

“Higher oil prices are keeping the spot well bid despite some relief in the dollar index,” said trader at a private bank.

“We’re seeing some month end demand too from importers, while the market is reluctant to go short ahead of the Federal Reserve’s Jackson Hole meeting.” Oil prices continued to trade above $100 per barrel on concerns over supply tightness, adding to the pressure on rupee as India is a major crude importer.

The unit sat out a broader rally in Asian emerging markets that gained on the dollar wobbling, heading into the Fed’s economic symposium. Any commentary on the central bank’s rate hike path will be keenly watched.

Despite a volatile few days for global markets, the USD/INR pair’s realised volatility measured over the last 10 trading days has fallen to its lowest since July 28 as equity inflows and the Reserve Bank of India’s support insulated it from wild swings.

“We reckon that there is a fair chance of a relief rally after Fed Chair Jerome Powell’s statement, as he walks a fine line between inflation concerns and signalling that the Fed would be able to engineer a soft landing for the US economy,” HDFC economists wrote in a note.

Among EMs, India will be a beneficiary of likely dollar weakness to follow due to its strong domestic fundamentals, relative immunity from global trade slowdown and less dependency on tight monetary policy to attract foreign flows, they added.

Comments

Comments are closed.