Indian currency bounces back from record low

23 Jun 2022 , 11:59 AM

The rupee increased 9 paise to 78.23 versus the US dollar in early morning trade on Thursday (23-06-2022), rebounding from its record low. At the interbank foreign exchange, the rupee was first quoted at 78.26 versus the US dollar before edging up to 78.23, up 9 paise from the previous close.

The rupee lost 19 paise on Wednesday (22-06-2022), reaching an all-time low of 78.32 versus the US dollar. The dollar index, which measures the strength of the dollar against a basket of six different currencies, was trading 0.5% down at 104.14 at the time.

According to Sriram Iyer, Senior Research Analyst at Reliance Securities, “the Indian Rupee opened firmer versus the dollar early Thursday morning, reflecting a further decline in crude oil prices.” Benchmark Brent crude futures for world crude oil decreased 2.17 percent to USD 109.32 a barrel.

In the meantime, according to the minutes of the most recent Monetary Policy Committee (MPC) meeting, which were made public on Wednesday, all six members of the MPC, including the governor of the Reserve Bank of India, expressed concern over the persistence of high inflation and emphasized that the central bank would work to reduce the rate of price growth within the target range. 

The 30-share Sensex was up 305.1 points, or 0.59 percent, at 52,127.63 on the domestic equities market, while the larger NSE Nifty was up 95.00 points, or 0.62 percent, at 15,508.30.

According to stock exchange statistics, foreign institutional investors continued to be net sellers on Wednesday in the capital market, selling shares worth Rs 2,920.61 crore.