Indian Rupee: Expected To See Recovery On Dollar Weakness

25 Jul 2022 , 09:12 AM

The Indian rupee is expected to see some recovery on Monday, tracking weakness in US dollar overseas couple with lower crude oil prices. Dollar is tracking US treasury yields lower ahead of Federal Reserve decision later this week. The dollar index, that measures the greenback against a basket of currencies is down 0.11% at 106.50. On Friday, rupee fell by 5 paise to close at 79.90 against the US dollar. At the interbank forex market, the local unit opened lower against the greenback and finally settled at 79.90, registering a fall of 5 paise from its previous close. During the day, the local unit witnessed an intra-day high of 79.86 and a low of 79.92 against the American currency. Domestic equity benchmarks ended near the days high after a strong session on Friday. Positive global cues and a reversal in foreign fund selling in the Indian market supported the sentiment. The barometer index, the S&P BSE Sensex, advanced 390.28 points or 0.70% to 56,072.23. The Nifty 50 index gained 114.20 points or 0.69% to 16,719.45. Foreign portfolio investors (FPIs) sold shares worth Rs 675.45 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 739.38 crore in the Indian equity market on 22 July, provisional data showed. Overseas, Asian stocks are trading lower on Monday ahead of an important week in the U.S. US stocks ended lower on Friday as disappointing earnings from Snap spooked investors and shares in social media and ad-tech firms dropped, offsetting gains from card issuer American Express following an upbeat forecast. Later this week, all eyes will be on the Fed rate decision and the release of second quarter gross domestic product data in the U.S. The US Federal Reserve will opt for another 75 basis point rate hike rather than a larger move at its meeting next week to quell stubbornly-high inflation, as per reports. Over the weekend, the World Health Organization declared monkeypox a global health emergency. The organizations emergency committee was unable to reach a consensus, but WHO chief Tedros Adhanom Ghebreyesus made the decision to issue the highest alert, though he said it is unlikely to disrupt global trade or travel at the moment. Powered by Commodity Insights