Indian Rupee: Expected To Stay Volatile

12 Sep 2022 , 09:20 AM

The Indian rupee is seen likely to stay volatile tracking a cautious dollar ahead of key US inflation data due this week. The dollar index that measures the greenback against a basket of currencies is seen down 0.24% at 108.46 even as treasury yields stay firm near 3.3% ahead of crucial inflation data. Rupee appreciated 12 paise to close at 79.57 against the US dollar on Friday. At the interbank forex market, the local unit opened at 79.66 against the greenback. It witnessed an intra-day high of 79.47 and a low of 79.66 during the session. It finally ended at 79.57, up 12 paise from its previous close of 79.69. Domestic headline equity indices ended with decent gains after a volatile session on Friday. The barometer index, the S&P BSE Sensex, rose 104.92 points or 0.18% to 59,793.14. The Nifty 50 index gained 34.60 points or 0.19% to 17,833.35. Foreign portfolio investors (FPIs) bought shares worth Rs 2,132.42 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,167.56 crore in the Indian equity market on 9 September, provisional data showed. Overseas, Asian stocks are trading higher on Monday on improved risk sentiment. Mainland China, Hong Kong and South Korea markets are closed for a holiday. US stocks rallied on Friday as investors went on a buying spree, shrugging off concerns about the economic outlook. The U.S. is set to release its consumer price index for August on Tuesday. The report is one of the last pieces of data on inflation the Fed will see ahead of its September meeting. Retail sales and industrial production reports will be released Thursday. Powered by Commodity Insights