Indian Rupee: Likely To Be Positive Amid Sustained Foreign Inflows

17 Aug 2022 , 09:21 AM

Sustained foreign fund inflows, coupled with lower crude oil prices and somewhat weak dollar could keep the Indian rupee positive on Wednesday, August 17, 2022. The forex market is returning to trade after an extended holiday weekend. US 10-year benchmark yields are hovering above 2.8% mark and dollar index that measures the greenback against basket of currencies is holding above 106 levels awaiting release of the minutes of the Federal Open Market Committee for further cues regarding interest rates. Domestic equity benchmarks ended with strong gains on Tuesday, aided by positive global cues. Better-than-expected domestic inflation data also lifted sentiment. The barometer index, the S&P BSE Sensex, advanced 379.43 points or 0.64% to 59,842.21. The Nifty 50 index added 127.10 points or 0.72% to 17,825.25. Foreign portfolio investors (FPIs) bought shares worth Rs 1,376.84 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 136.24 crore in the Indian equity market on 16 August, provisional data showed. Overseas, Asian stocks are trading higher on Wednesday as strong overnight earnings for U.S. retail giants pointed to further scope for the Federal Reserve to tackle inflation with rate hikes. In US, the Dow and S&P 500 rose on Tuesday as stronger-than-expected results and outlooks from Walmart and Home Depot bolstered views on the health of consumers, while technology shares declined and weighed on the Nasdaq. Powered by Commodity Insights