Indian Rupee: Likely To Restrict Sharp Losses

14 Jun 2022 , 09:36 AM

The Indian rupee is likely to restrict some of its sharp losses on Tuesday, as the US dollar is seen limiting sharp spike in early Asia. Weak Asian currencies, persistent foreign capital outflows and strength in dollar kept rupee under pressure for three straight days. On Monday, rupee depreciated by 11 paise to close at a fresh lifetime low of 78.04 against the US dollar. At the interbank foreign exchange market, the local currency opened at 78.20 and witnessed an intra-day high of 78.02 and a low of 78.29 against the US dollar. The local unit finally settled at its all-time low of 78.04, down 11 paise over its previous close of 77.93. Domestic equity benchmarks crashed on Monday, tracking dismal global cues. The barometer index, the S&P BSE Sensex, slumped 1,456.74 points or 2.68% to 52,846.70. The Nifty 50 index tumbled 427.40 points or 2.64% to 15,774.40. Foreign portfolio investors (FPIs) lost shares worth Rs 4,164.01 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,814.50 crore in the Indian equity market on 13 June, provisional data showed. Overseas, Asian stocks are trading lower on Tuesday after Wall Street hit a confirmed bear market milestone and bond yields struck a two-decade high on fears aggressive U.S. interest rate hikes would push the worlds largest economy into recession. US equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. Investors are looking ahead to Wednesday when the Fed is expected to announce at least a half-point rate hike. The central bank has already raised rates twice this year, including a 50-basis-point increase in May in an effort to stave off the recent inflation surge. The Fed could even raise rates by 0.75% this week following Fridays CPI report, as per reports. Powered by Commodity Insights