Indian Rupee: Expected To Stay Under Pressure

25 Apr 2022 , 08:50 AM

The Indian rupee is expected to continue to stay under pressure in opening trades on Monday, 25 April 2022 tracking strength in dollar and waning global risk appetite. Besides, persistent foreign capital outflows are also likely to dent investor sentiment. However, easing crude oil prices could help limit sharp losses in the local unit.

On Friday, rupee fell 25 paise to close at 76.42 against the US dollar. At the interbank forex market, the rupee opened sharply lower at 76.31 against the greenback and lost further ground during the session. The domestic unit witnessed an intra-day high of 76.19 and a low of 76.51. It finally settled at 76.42, a fall of 25 paise over its previous close of 76.17.

Domestic benchmark indices ended with steep losses on Friday. The barometer index, S&P BSE Sensex slumped 714.53 points or 1.23% at 57,197.15. The Nifty 50 index shed 220.65 points or 1.27% at 17,171.95. Foreign portfolio investors (FPIs) sold shares worth Rs 2,461.72 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,602.35 crore in the Indian equity market on 22 April, provisional data showed.

Overseas, Asian stocks are trading lower on Monday following a sell-off on Wall Street on Friday. Australia and New Zealand markets are closed on Monday for a holiday. Wall Street tumbled on Friday as surprise earnings news and increased certainty around aggressive near-term interest rate rises took its toll on investors.

Meanwhile, the dollar index, that measures the greenback against a basket of currencies was at 101.27 on Monday morning, just shy of a two-year peak of 101.33 hit on Friday.

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