Indian Rupee: Likely To Be Battered By Strong Dollar

12 Jul 2022 , 09:29 AM

The Indian rupee is likely to be heavily battered by as strong dollar overseas. The dollar index climbed to a fresh near two-decade peak at 108.29 before easing slightly to 108.15, still holding firm with a gain of nearly 0.30% over the last closing level. Besides, subdued equities, risk off mood and sustained foreign fund outflows could add further pressure on the domestic currency. However, easing crude oil prices could lend some respite to the local unit. On Monday, rupee depreciated by 22 paise to slump to a new record low of 79.48 against the US dollar. At the interbank forex market, the local unit opened weak at 79.30 against the greenback and witnessed an intra-day high of 79.24 and a low of 79.50. It finally settled at 79.48 (provisional), down 22 paise over its previous close of 79.26. Domestic benchmark indices ended with tiny losses after a volatile session on Monday. The barometer index, the S&P BSE Sensex, down 86.61 points or 0.16% to 54,395.23. The Nifty 50 index shed 4.60 points or 0.03% to 16,216. Foreign portfolio investors (FPIs) sold shares worth Rs 170.51 crore, while domestic institutional investors (DIIs), were also net sellers to the tune of Rs 296.99 crore in the Indian equity market on 11 July, provisional data showed. Overseas, Asian stocks are trading lower on Tuesday after Wall Street slipped overnight. Also the prospect of further monetary policy tightening by central banks, Chinas renewed COVID outbreak and Europes energy shortage impacted sentiment. U.S. equities fell Monday as Wall Street braced for big company earnings reports slated for later in the week which could signal how inflation is impacting businesses. Powered by Commodity Insights