Currency Buzz: INR Fails To Gain Respite From Dollar Weakness

7 Jul 2022 , 05:03 PM

The Indian rupee declined 19 paise to close at 79.13 (provisional) against the US dollar on Thursday even as dollar stayed subdued. A hawkish stance of the US Federal Reserve increased the possibility of another aggressive rate hike this month, eroding sentiments. At the interbank foreign exchange market, the local currency opened at 79.05 and finally ended at 79.13, down 19 paise over its previous close. On Wednesday, the rupee closed at 78.94. The RBI on Wednesday raised overseas borrowing limits for companies and liberalised norms for foreign investments in government bonds as it announced a slew of measures to boost foreign exchange inflows in efforts to curb the fall of the rupee. The central bank had also said it has been closely and continuously monitoring the liquidity conditions in the forex market and has stepped in as needed in all its segments to alleviate dollar tightness with the objective of ensuring orderly market functioning. Powered by Commodity Insights