Indian Rupee: Expected To See Recovery As Dollar Stays On Backfoot

20 Jul 2022 , 09:06 AM

The Indian rupee is expected to see some recovery as dollar stays on backfoot in early Asia on Wednesday, 20 July 2022. The dollar index is down for the fourth consecutive day, its lowest level in almost two weeks. The dollar index, that measures the greenback against a basket of currencies was down 0.12% at 106.41. Foreign investors have also resumed buying the in the domestic equity market, positive for the local unit. On Tuesday, rupee recovered from its all-time low of 80.05 to close 6 paise higher at 79.92 against the US dollar. At the interbank forex market, the local unit opened lower at 80.00 against the greenback and fell further to an intra-day low of 80.05. The local unit recouped losses later and settled at 79.92, registering a rise of 6 paise over its previous close. On Monday, the rupee for the first time declined to the low level of 80 against the US dollar in intra-day spot trading before ending the session 16 paise lower at 79.98 amid a surge in crude oil prices and unrelenting foreign fund outflows. Domestic benchmark equity indices closed with decent gains on Tuesday. The trading was volatile amid mixed global cues. The barometer index, the S&P BSE Sensex, was up 246.47 points or 0.45% to 54,767.62. The Nifty 50 index added 62.05 points or 0.38% to 16,340.55. Foreign portfolio investors (FPIs) bought shares worth Rs 976.40 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 100.73 crore in the Indian equity market on 19 July, provisional data showed. Overseas, Asian stocks are trading with shar gains on Wednesday after a sharp bounce in U.S. stocks overnight. China kept its one-year and five-year loan prime rates unchanged at 3.7% and 4.45% Wednesday. U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. Powered by Commodity Insights