Indian Rupee: Likely To Pare Some Losses

21 Jul 2022 , 09:27 AM

Renewed buying by foreign investors in Indian market is expected to help rupee pare some of its sharp losses on Thursday. Besides, lower crude prices and extended decline in dollar in early Asia today may also lend support to the local unit. On Wednesday, rupee declined 13 paise to close below the 80 mark for the first time against the US currency. At the interbank foreign exchange market, the local currency opened at 79.91 and later slid to a low of 80.05 to a dollar. The rupee traded in a range of 79.89 to 80.05 in the day trade. It finally settled at the days low level of 80.05, showing a loss of 13 paise over the previous close. On Tuesday, the rupee recovered from its all-time low of 80.05 to close 6 paise higher at 79.92 against the US dollar. Domestic headline equity indices settled with strong gains on Wednesday amid positive global cues. The barometer index, the S&P BSE Sensex, was up 629.91 points or 1.15% to 55,397.53. The Nifty 50 index gained 180.30 points or 1.10% to 16,520.85. Foreign portfolio investors (FPIs) bought shares worth Rs 1,780.94 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 230.22 crore in the Indian equity market on 20 July, provisional data showed. Overseas, Asian stocks are trading mixed on Thursday as investors look ahead to the Bank of Japan rate decision. The Bank of Japan is expected to keep rates at ultra-low levels Thursday, as per reports. US stocks ended higher on Wednesday on positive earnings signals with a wary eye on inflation and more interest rate hikes by the Fed. U.S. President Joe Biden said he expects to speak with Chinese President Xi Jinping by the end of the month, as per reports. He did not elaborate on reasons for the call or planned topics of discussion. The European Central Bank policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday to tame record-high inflation, as per reports. Powered by Commodity Insights