Indian Rupee: Dollar Weakness To Support

3 Jun 2022 , 09:00 AM

The Indian rupee could erase some of its previous losses in opening trades on Friday, supported by weakness in the US dollar overnight. US dollar fell as investors risk appetite improved. The U.S. dollar currency index, which tracks the greenback against six major currencies, was 0.8% lower at 101.70, on pace to snap a two-day streak of gains. Positive sentiment in local and regional equities are also likely to support the local unit. Nevertheless, jump in crude oil prices may restrict sharp gains in the currency. On Thursday, rupee depreciated by 10 paise to close at 77.60 against the US dollar. At the interbank foreign exchange market, the rupee consolidated in a narrow range. It opened lower at 77.61 against the greenback and finally settled at 77.60, down 10 paise over its previous close. During the session, the rupee touched an intra-day low of 77.63 and a high of 77.54. On Wednesday, the rupee had recovered from its record low to close 21 paise higher at 77.50. The domestic equity barometers ended with strong gains on Thursday, snapping a two-day losing run. Good GST collection and PMI data in May boosted sentiment. A correction in crude oil prices also supported buying. The barometer index, the S&P BSE Sensex, was up 436.94 points or 0.79% to 55,818.11. The Nifty 50 index rose 105.25 points or 0.64% to 16,628. Foreign portfolio investors (FPIs) sold shares worth Rs 451.82 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 130.63 crore in the Indian equity market on 2 June 2022, provisional data showed. Most Asian shares rose on Friday following gains overnight on Wall Street. Investors are looking ahead to the release of U.S. jobs data for May. Markets in mainland China, Hong Kong and Taiwan are closed on Friday for a holiday. In the US, the three major indices snapped two-day losing streaks. The S&P 500 jumped 1.84% to 4,176.82. The Dow Jones Industrial Average climbed 435.05 points, or 1.33%, to 33,248.28. The tech-heavy Nasdaq Composite surged 2.69% to 12,316.90 Powered by Commodity Insights