Indian Rupee: Likely To Extend Recovery

11 May 2022 , 09:10 AM

The Indian rupee is likely to extend recovery against the dollar in opening trades on Wednesday, backed by slight pull back in dollar although crude prices rebound. Investor eye key US inflation data due for the day. Dollar index holds under 104 mark as US treasury yields took a breather at around 2.95% after hitting a high of 3.20% on Monday for the first time since November 2018. On Tuesday, rupee recovered 12 paise to end at 77.32 against the US dollar. At the interbank forex market, the rupee opened strong at 77.27 against the greenback and moved in a range of 77.20 to 77.45 in the day trade. The rupee finally ended at 77.32, 12 paise higher than its previous close. In the previous session, the rupee had slumped 54 paise to close at a record low of 77.44 against the US dollar. Domestic benchmark indices ended with minor cuts on Tuesday, sliding for the third trading session. The barometer index, S&P BSE Sensex fell 105.82 points or 0.19% at 54,364.85. The Nifty 50 index lost 61.80 points or 0.38% at 16,240.05. Foreign portfolio investors (FPIs) sold shares worth Rs 3,960.59 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,958.40 crore in the Indian equity market on 10 May, provisional data showed. Overseas, Asian stocks are trading mixed on Wednesday as investors watched for market reaction to the release of higher-than-expected Chinese inflation data for April. In US, the S&P 500 and Nasdaq ended higher on Tuesday, with big growth shares rising after the previous days selloff as Treasury yields tumbled. Bank shares fell along with yields. Powered by Commodity Insights