Indian Rupee: Expected To Stay Cautious

28 Feb 2022 , 09:17 AM

The Indian rupee is expected to stay cautious with a downward bias in opening trades on Monday, 28 February 2022 as dollar soared against nearly all peers after Western nations announced fresh sanctions to punish Russia for its invasion of Ukraine, and Vladimir Putin put nuclear-armed forces on high alert.

Domestic stock market ended with robust gains on Friday amid positive global cues. The S&P BSE Sensex, surged 1,328.61 points or 2.44% to 55,858.52. The Nifty 50 index jumped 410.45 points or 2.53% to 16,658.40. Foreign portfolio investors (FPIs) sold shares worth Rs 4,470.70 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,318.24 crore in the Indian equity market on 25 February, provisional data showed.

Overseas, Asian stocks are trading mixed on Monday as investors monitor the Russia-Ukraine crisis and related sanctions. Taiwan markets are closed for a holiday on Monday. US stocks climbed Friday as investors continued to assess the financial risks stemming from Russias invasion of Ukraine.

Russia continued its advance into Ukraine over the weekend, with reports of fighting on the streets and forces encircling Kyiv. President Vladimir Putin on Sunday put his countrys deterrence forces, which reportedly include nuclear capabilities, on high alert in response to international backlash to Russias invasion. The U.S. and its allies announced new sanctions and measures to hit Russia. Many countries have also said they will close their airspace to Russian aircraft.

Meanwhile, the dollar index climbed amid safe haven demand and was at 97.36, well up from Fridays close of 96.570.

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