Indian rupee: Dollar Strength To Weigh

24 Aug 2022 , 09:15 AM

Renewed strength in the US dollar amid persistent fears of an economic slowdown and a hawkish fed following weaker than expected US data is likely to add pressure on the Indian rupee on Wednesday. Meanwhile investors focus has shifted to Fridays speech by Fed Chairman Jerome Powell at the Kansas City Feds symposium in Jackson Hole for further cues. The dollar index that measures the greenback against a basket of currencies is quoting higher at 108.71, recovering from yesterdays low of 107. 99. On Tuesday, rupee depreciated 4 paise to close at 79.88 (provisional) against the US dollar. At the interbank foreign exchange market, the local currency opened at 79.85 and saw an intra-day high of 79.81 and a low of 79.90 against the American currency. It finally ended at 79.88, down 4 paise over its previous close. In the previous session, the rupee had closed at 79.88 against the US dollar. Domestic benchmark indices ended the volatile session with modest gains on Tuesday. Bargain hunting emerged after losses in the past two days. The barometer index, the S&P BSE Sensex, rose 257.43 points or 0.44% to 59,031.30. The Nifty 50 index added 86.80 points or 0.50% to 17,577.50. Foreign portfolio investors (FPIs) bought shares worth Rs 563 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 215.20 crore in the Indian equity market on 23 August, provisional data showed. Overseas, Asian stocks are trading mixed on Wednesday as investors assessed whether an escalating economic slowdown will lead the Federal Reserve to temper the pace of monetary tightening. Wall Street ended down on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming. Investors are awaiting Fed Chair Jerome Powells speech at the Jackson Hole symposium on Friday for a sense of how hawkish the US central bank will be in the face of mounting economic challenges. Powered by Commodity Insights