Indian Rupee: Likely To See Some Recovery

27 Sep 2022 , 09:17 AM

The Indian rupee is likely to recover on Tuesday from sharp losses registered against a rampant dollar in the previous session. Slight weakness in the dollar index could give some much needed respite to the domestic currency. The dollar index that tracks the greenback against a basket of currencies is quoting down 0.25% at $113.75. Yesterday, rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit. Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite. At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close. The domestic benchmark bond yields are quoting at 7.43%. Powered by Commodity Insights