Indian Rupee: Dollar Weakness Likely To Support

22 Nov 2022 , 09:27 AM

Dollar weakness in early Asia on Tuesday is likely to augur well for the Indian rupee in opening trades. The dollar index tracked US treasury yields lower as the latest comments from the Federal Reserve (Fed) officials failed to bolster the previously hawkish bias. Cleveland Fed President Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month. The US 10-year Treasury yields printed the first daily loss in four, down one basis point near 3.81%. Meanwhile, dollar index that measures the greenback against a basket of currencies was down 0.25% at 107.46. Yesterday, rupee depreciated 7 paise to close at 81.8 against the US dollar. At the interbank foreign exchange market, the local unit opened at 81.84 and later witnessed an intraday high of 81.74 and a low of 81.91 during the session. The domestic unit finally settled at 81.81 against the American currency, registering a fall of 7 paise over its last close. Asian shares were mixed on Tuesday as concerns over Chinas COVID flare ups and hawkish US Fed commentary. US stocks fell Monday in a volatile session to start a short trading week due to the Thanksgiving holiday. Fears that China may again ramp up Covid restrictions after reporting deaths from the virus weighed on markets. Powered by Commodity Insights