Ahead of the Fed meeting, rupee appreciated by 7 paisa to 79.74/$

21 Sep 2022 , 08:48 AM

As investors wait for more clues from the US Fed’s policy announcement, the rupee stabilized in a constrained range and ended the day 7 paise higher at 79.74 vs the US dollar, ending a four-session losing skid.

The local currency’s opening rate on the interbank foreign exchange market was 79.70 per US dollar. During the session, it saw a high of 79.58 and a low of 79.77 for the day.

The final closing price was 79.74, an increase of 7 pence from the previous closure of 79.81. Due to foreign outflows and a stronger dollar, the rupee fell 64 paise during the last four days.

The dollar index rates the dollar’s value against a basket of six other currencies, increasing 0.12% to 109.87. Global oil benchmark Brent crude futures saw a 0.14 percent increase to USD 92.13 per barrel.

As investors anticipated the US Fed meeting on Wednesday, counterparts in the Asian and developing market regions continued to struggle, while oil prices were unchanged.

While the Euro struggled to maintain parity with the dollar in international markets, the dollar index remained somewhat higher thanks to high bond rates.

Markets may be looking for hints from construction permit and house sales data before the Fed meeting. As investors get ready for a ferocious interest rate rise by the US Federal Reserve, Indian bond rates closed higher on Tuesday for the fifth straight day.

The BSE Sensex closed the day 578.51 points or 0.98 % higher at 59,719.74, while the larger NSE Nifty increased by 194.00 points or 1.1% to 17,816.25. According to exchange statistics, Foreign Institutional Investors (FIIs) changed from sellers to purchasers on Tuesday, buying shares worth Rs1,196.19 crore.

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