Indian Rupee: Firm Dollar To Weigh

14 Jul 2022 , 09:19 AM

The Indian rupee is expected to accrue further losses against a firm dollar on Thursday, 14 July 2022 amid weakening risk sentiment after US consumer prices surged by more than expected in the month of June, adding further pressure on the Federal Reserve to go more aggressive on rate hikes. The report showed the consumer price index shot up by 1.3 percent in June after jumping by 1.0 percent in May. With the bigger than expected monthly increase, the annual rate of consumer price growth accelerated to 9.1 percent in June, reflecting the fastest growth since November 1981. Key equity indices ended near the days low with modest losses on Wednesday. The barometer index, the S&P BSE Sensex, down 372.46 points or 0.69% to 53,514.15. The Nifty 50 index fell 91.65 points or 0.57% to 15,966.65. Foreign portfolio investors (FPIs) sold shares worth Rs 2,839.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,799.22 crore in the Indian equity market on 13 July, provisional data showed. Overseas, Asian stocks are trading lower after a hotter-than-expected inflation report in the U.S. Singapores central bank tightened its monetary policy on Thursday, in an off-cycle move, saying the action would slow inflation as the city-state joins other countries ramping up their battle against mounting price pressures. US stocks closed modestly lower on Wednesday as hotter-than-expected US inflation data drove fear the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession. Powered by Commodity Insights