Indian Rupee: Likely To Be Under Pressure Amid Firm Crude Prices

28 Jun 2022 , 09:03 AM

Firm crude oil prices in international market coupled with capital outflows are expected to add pressure on the Indian rupee in opening trades on Tuesday, although weakness in dollar could limit sharp losses in the counter. Rupee slipped 4 paisa to close at its fresh life-time low of 78.37 against US dollar on Monday. The dollar index, that measures the greenback against a basket of currencies is quoting at 103. 69. At the interbank forex market, the local unit opened sharply higher at 78.24 against the greenback on Monday, but paired all of its initial gains to settle at 78.37. It witnessed an intra-day high of 78.24 and a low of 78.37. In the previous session, the rupee had settled at 78.33 against the greenback. Domestic key equity barometers ended with strong gains on Monday, rising for the third day in a row. Global stock markets jumped amid cooling commodity prices. The barometer index, the S&P BSE Sensex, up 433.30 points or 0.82% to 53,161.28. The Nifty 50 index gained 132.80 points or 0.85% to 15,832.05. Foreign portfolio investors (FPIs) sold shares worth Rs 1,278.42 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,184.47 crore in the Indian equity market on 27 June, provisional data showed. Overseas, Asian stocks are mostly trading lower on Tuesday as investors weigh economic concerns. US stocks closed lower on Monday on heightened inflation worries and tightening Fed policy. The major averages struggled as investors weighed whether stocks have reached a bottom or are instead briefly rebounding from oversold conditions. Meanwhile, Ukraines President Volodymyr Zelenskyy has addressed the leaders of the G-7 nations who are gathered in Munich, Germany, reportedly pressing them for more heavy weaponry and help to end the war before winter sets in. Zelenskyy has reportedly requested anti-aircraft defense systems to help protect Ukraine and has said he wants the war to end before the end of the year. The G-7, in turn, has promised to support Ukraine for as long as it takes. Powered by Commodity Insights