Indian Rupee: All Eyes On Fed Speech

26 Aug 2022 , 09:19 AM

The Indian rupee is likely to stay cautious against the dollar on Friday as investors look ahead to Fed Chair Jerome Powells speech at Jackson Hole later stateside. Fed watchers expect him to reinforce the central banks goal of squashing inflation and keeping expectations about future price gains in check. The US dollar index DXY was last up 0.11% at 108.53, holding just below a 20-year high of 109.29 reached on July 14. Benchmark treasury yields are hovering above 3% mark. On Thursday, rupee declined by 7 paise to close at 79.93 against the US dollar. At the interbank foreign exchange market, the domestic currency opened at 79.80 per dollar. It hovered in a range of 79.80 to 79.93 during the session. The domestic unit finally settled at 79.93, down 7 paise over its previous close of 79.86. Domestic benchmark indices ended with modest losses on Thursday. The barometer index, the S&P BSE Sensex, shed 310.71 points or 0.53% to 58,774.72. The Nifty 50 index declined 82.50 points or 0.47% to 17,522.45. Foreign portfolio investors (FPIs) bought shares worth Rs 369.06 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 334.31 crore in the Indian equity market on 25 August, provisional data showed. Wall Street ended sharply higher on Thursday, lifted by gains in Nvidia and other technology-related stocks as investors focused on the Federal Reserves Jackson Hole conference for clues about the central banks policy outlook. Powered by Commodity Insights