Indian Rupee: Dollar Weakness To Support

9 Sep 2022 , 09:34 AM

Weakness in dollar overseas is expected to support the Indian rupee in early trades on Friday, September 9, 2022. Improving sentiments in equities is also aiding gains in the local unit. The dollar index that tracks the greenback against a basket of currencies was down 0.71% at 108.94. On Thursday, rupee appreciated 23 paise to close at 79.72 against the US dollar. At the interbank forex market, the local unit opened at 79.72 against the greenback. It witnessed an intra-day high of 79.65 and a low of 79.83 during the session. It finally ended at 79.72, up 23 paise from its previous close of 79.72. Domestic equity benchmarks ended with strong gains on Thursday. The barometer index, the S&P BSE Sensex, gained 659.31 points or 1.12% to 59,688.22. The Nifty 50 index added 174.35 points or 0.99% to 17,798.75. Foreign portfolio investors (FPIs) bought shares worth Rs 2,913.09 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 212.61 crore in the Indian equity market on 8 September, provisional data showed. Overseas, Asian stocks are trading higher as investors digested Federal Reserve Chair Jerome Powells latest comments as he vowed to raise rates to tackle inflation ?until the job is done. US stocks rose Thursday after moving between gains and losses as Wall Street weighed Federal Reserve Chair Jerome Powells comments on the central bank continuing to fight inflation. Powell reiterated that the central bank will do what it takes to fight inflation. He also signaled that a pause in rate hikes or a pivot to cutting interest rates is not coming soon. The European Central Bank Thursday hiked interest rates by 0.75 percentage point, raising its deposit to 0.75% from zero, in a largely expected move to tamp down inflation. Powered by Commodity Insights