Indian Rupee: Expected To Recoup From Record Lows

10 May 2022 , 08:59 AM

The Indian rupee is likely to recuperate from record lows in opening trades on Tuesday, 10 May 2022 after the currency plunged to all-time low levels in the previous session. Easing crude oil prices are also likely to benefit the local unit. However, the domestic unit will be continued to be pressured by the strength of the American currency overseas and unabated foreign fund outflows. On Monday, rupee extended its losses and slumped 60 paise to close at a record low of 77.50 against the US dollar. At the interbank foreign exchange market, the rupee opened lower at 77.17 against the greenback, and finally settled for the day at 77.50, down 60 paise over its previous close. During the trading session, the rupee touched its lifetime low of 77.52. On Friday, the rupee had slumped 55 paise to close at 76.90. Domestic benchmark indices ended with modest fall on Monday, extended losses for the second consecutive day. Weakness in global stocks weighed on investors sentiment. The barometer index S&P BSE Sensex dropped 364.91 points or 0.67% at 54,470.67. The Nifty 50 index lost 109.40 points or 0.67% at 16,301.85. Foreign portfolio investors (FPIs) sold shares worth Rs 3,361.80 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,077.24 crore in the Indian equity market on 9 May, provisional data showed. Overseas, Asian stocks dropped to their lowest in nearly two years on Tuesday as investors shed riskier assets on worries about higher interest rates and their impact on economic growth. The S&P 500 ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4% on Monday in a selloff led by mega-cap growth shares as investors grew more concerned about rising interest rates. Meanwhile, the US dollar index, that measures the greenback against a basket of currencies is seen at 103.60. The greenback is staying in a narrow range as investors are awaiting the release of the US Consumer Price Index (CPI), which will dictate the further direction of the asset. Powered by Commodity Insights