Indian Rupee: Dollar Rebound Could Weigh

19 Sep 2022 , 09:18 AM

The Indian rupee is expected to come under pressure on Monday, tracking a rebound in the US dollar overseas. Dollar is seen marching ahead amid expectations of a Federal Rate hike in its upcoming policy meeting. The dollar index that measures the greenback against a basket of currencies is seen marginally up at 109.55. On Friday, rupee declined by 7 paise to close at 79.78 (provisional) 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 79.71 to 79.85 during the session. The domestic unit finally settled at 79.78, down 7 paise over its previous close of 79.71. Overseas, Asian stocks are trading mixed on Monday ahead of major central bank meetings this week. Japans market was closed for a holiday Monday. Later this week, the US Federal Reserve and the Bank of Japan will be announcing their interest rate decisions. Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation. The Bank of Japan is expected to keep rates on hold at ultra-low levels, as per reports. US stocks ended in the red on Friday, falling to two-month lows as a warning of impending global slowdown from FedEx hastened investors flight to safety at the conclusion of a tumultuous week. Powered by Commodity Insights