Indian Rupee: Dollar Strength To Weigh

11 Jul 2022 , 09:05 AM

Strength in dollar is expected to keep rupee sentiments damp in opening trades on Monday, 11 July 2022. Concerns about global economic growth offered support to the safe haven currency that stays tall near two-decade peaks at 107.13. Risk off mood in equities coupled with sustained foreign fund outflows are likely to further weigh down the local currency. On Friday, rupee declined by 13 paise to close at 79.26 against the US dollar. At the interbank foreign exchange market, the local currency opened weak at 79.20 and touched a high of 79.20 and a low of 79.32. It finally ended at 79.26, down 13 paise over its previous close of 79.13. Domestic benchmarks ended with modest gains after a volatile session on Friday. The barometer index, the S&P BSE Sensex, gained 303.38 points or 0.56% to 54,481.84. The Nifty 50 index rose 87.70 points or 0.54% to 16,220.60. Foreign portfolio investors (FPIs) sold shares worth Rs 109.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 34.61 crore in the Indian equity market on 8 July, provisional data showed. Overseas, Asian stocks are trading lower on Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season where profits could be under pressure. Hong Kongs Hang Seng index fell more than 2% after reports that China has imposed fines on heavyweights Tencent and Alibaba. China imposed fines on several companies, including tech giants Alibaba and Tencent, for not complying with anti-monopoly rules on disclosure of transactions, as per reports. U.S. stocks closed mixed Friday, with the technology-heavy Nasdaq Composite ending higher as the Dow Jones Industrial Average and S&P 500 index slipped, after a stronger-than-expected June jobs report. Powered by Commodity Insights