Indian Rupee: Likely To Rebound In Early Trades

Indian Rupee: Likely To Rebound In Early Trades

Sep 17, 2021 09:09 IST capital market

Sustained foreign fund inflows and dollar edging lower in early Asian trades is likely to give rupee the momentum to rebound on Friday, 17 September 2021. The Indian rupee was little changed to end marginally lower by 2 paise at Rs 73.52 against the dollar on Thursday, 16 September 2021. The domestic currency opened at 72.51 and climbed to a high of 73.34 before closing for the day slightly lower at 73.52 as compared to its previous close at 73.50 against the greenback.

Domestic benchmark indices ended with robust gains on Thursday, supported by firmness in banks and FMCG stocks. The barometer index, the S&P BSE Sensex, jumped 417.96 points or 0.71% at 59,141.16. The Nifty 50 index advanced 110.05 points or 0.63% to 17,629.50. Foreign portfolio investors (FPIs) bought shares worth Rs 1,621.88 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 795.13 crore in the Indian equity market on 16 September, provisional data showed.

Meanwhile, all eyes are on the GST Council meeting scheduled today, 17 September 2021 in Lucknow. The agenda for the GST Council meet includes considering taxing petrol, diesel and other petroleum products under the single national GST regime. Meanwhile, the Union Cabinet has approved central government guarantee up to Rs 30,600 crore to back security receipts (SRs) to be issued by National Asset Reconstruction Company Limited (NARCL) for acquiring stressed loan assets. NARCL proposes to acquire stressed assets of about Rs 2 lakh crore in phases within extant regulations of Reserve Bank of India (RBI). It intends to acquire these through 15% cash and 85% in SRs.

Overseas, Asian stocks are trading mixed on Friday, as traders weighed risks from China to the global recovery and the prospect of reduced Federal Reserve stimulus. US stocks closed mostly lower on Thursday after swinging between gains and losses after unexpectedly strong retail sales data underscored the strength of the U.S. economic recovery.

Meanwhile, the US Dollar Index that tracks the greenback against a basket of other currencies inched down 0.03% to 92.88. The dollar was down on Friday morning in Asia but remained near three-week highs, after fresh data showed an unexpected rise in retail sales last month, prompting expectations the Fed will start tapering this year.

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