Indian Rupee: Firm Dollar To Weigh

3 Aug 2022 , 09:24 AM

Firm dollar overseas is seen weighing down the Indian rupee in opening trades on Wednesday although sustained foreign fund inflows and lower crude oil prices are likely to support the local unit. The U.S. dollar index, which measures the greenback against six peers, was last up 0.09% at 106.02. The index had eased recently as investors began reassessing how aggressive the Fed may be with rate hikes in the future. On Tuesday, rupee jumped 41 paise to close at 78.65 against the US dollar. At the interbank forex market, the local unit opened strong at 78.96 against the greenback and witnessed an intra-day high of 78.49 and a low of 78.96. It finally ended at 78.65 against the American currency, a rise of 41 paise over its previous close. In the previous session, the rupee had closed at 79.06 against the US dollar Domestic equity barometers ended a tad above the flat line after a volatile session on Tuesday. The barometer index, the S&P BSE Sensex, was up 20.86 points or 0.04% to 58,136.36. The Nifty 50 index rose 5.40 points or 0.03% to 17,345.45. Foreign portfolio investors (FPIs) bought shares worth Rs 825.18 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 117.79 crore in the Indian equity market on 2 August, provisional data showed. Overseas, Asian stocks are mostly higher on Wednesday as geopolitical tensions between the U.S. and China intensified over U.S. House Speaker Nancy Pelosis visit to Taiwan. Pelosi arrived in Taiwan on Tuesday night local time amid warnings from Beijing. Wall Street ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after US House of Representatives Speaker Nancy Pelosi visited Taiwan. Powered by Commodity Insights