Indian Rupee: Likely to Stay Listless

13 Apr 2022 , 09:05 AM

The Indian rupee is likely to stay listless on Wednesday, 13 April 2022 in a truncated trading week with stock markets remaining closed on Thursday, 14 April 2022 on account of Mahavir Jayanti / Dr.Baba Saheb Ambedkar Jayanti. Markets will also remain closed on Friday, 15 April 2022 due to Good Friday. Besides, Indias industrial growth, as per the Index of Industrial Production (IIP), edged up to 1.7% in February from 1.5% in January, while retail inflation jumped to a 17-month high of 6.95% in March from 6.07% in February.

On Tuesday, rupee fell 23 paise to close at 76.14 against the US dollar. At the interbank foreign exchange market, the rupee opened at 76.05 against the American currency and settled at 76.14, down 23 paise from the previous close. During the trading session, the rupee witnessed an intra-day high of 75.97 and a low of 76.17 against the American currency. On Monday, the rupee rose marginally to 75.91 against the US dollar.

Domestic equity barometers ended with steep losses on Tuesday amid mixed global cues. The S&P BSE Sensex shed 388.20 points or 0.66% to 58,576.37. The Nifty 50 index dropped 144.65 points or 0.82% to 17,530.30. Foreign portfolio investors (FPIs) sold shares worth Rs 3,128.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 870.01 crore in the Indian equity market on 12 April, provisional data showed.

Overseas, Asian stocks are trading mixed on Wednesday as investors watched for market reaction to the release of a slightly hotter-than-expected U.S. inflation report. US stocks fell on Tuesday, after an early morning bounce gave way to selling as investors weighed the latest U.S. inflation data. The report showed another sharp increase in prices for last month.

Meanwhile, US dollar index reversed its overnight spike tracking easing treasury yields after cooler-than-expected U.S. inflation data set bonds rallying and investors hoping that price pressures might have peaked. The dollar index, that measures the greenback against a basket of currencies was see quoting at 100,24, after surging to 100.45 yesterday.

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