Indian Rupee: Dollar Strength Likely To Weigh

16 Sep 2022 , 09:07 AM

Broad strength in dollar pulled higher by stronger treasury yields is likely to keep the Indian rupee under pressure on Friday. US 10-year Treasury yields were hovering at 13 week highs near 3.45%, while the dollar index hovered near a 20-year peak of 109.47. Besides, weak risk sentiments across the globe are also expected to weigh down the domestic currency. Asian shares declined on Friday as investors digest U.S. economic data and Chinas industrial production and retail sales figures for August. US stocks declined overnight as traders absorbed an ugly earnings warning from FedEx. Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%. The US Dow Jones index futures were down 163 points, indicating a negative opening in the US stocks today. Indian equities retreated from early highs to end with deep losses on Thursday, declining for the second consecutive day. The Sensex and the Nifty lost about 0.7% each as a lack of fresh triggers and subdued global cues weighed on the sentiment. The mid-cap space, however, showed some resilience. Trading was volatile due to the expiry of weekly index options on the NSE Thursday. The barometer index, the S&P BSE Sensex, declined 412.96 points or 0.68% to 59,934.01. The Nifty 50 index declined 126.35 points or 0.70% to 17,877.40. Foreign portfolio investors (FPIs) sold shares worth Rs 1,270.68 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 928.86 crore in the Indian equity market on 15 September 2022, provisional data showed. Powered by Commodity Insights