Indian Rupee: Likely To Stay Range Bound

25 Mar 2022 , 08:55 AM

The Indian rupee could gather some support in opening trades on Friday, 25 March 2022 from an easing dollar overseas after a two-day run. However, elevated crude oil prices are likely to continue to add pressure on the domestic currency. Foreign investors sell off from Indian markets is also expected to dampen rupee sentiments at the end of the week.

On Thursday, rupee traded in a narrow range but managed to settle 4 paise higher at 76.35 against the US dollar. At the interbank forex market, the local unit opened at 76.37 against the greenback and witnessed an intra-day high of 76.24 and a low of 76.41. The rupee settled at 76.35, registering a rise of 4 paise over its previous close. In the previous session, the rupee had settled at 76.39 against the US dollar.

Domestic equity barometers ended with minor cuts on Thursday, tracking negative global cues. The barometer index, the S&P BSE Sensex fell 89.14 points or 0.15% to 57,595.68. The Nifty 50 index lost 22.90 points or 0.13% to 17,222.75. Foreign portfolio investors (FPIs) sold shares worth Rs 1,740.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,091.07 crore in the Indian equity market on 24 March, provisional data showed.

Overseas, Asian stocks rose in early trade Friday as Wall Street stocks rallied overnight and oil prices fell. US stocks rose following choppy trading on Thursday, as investors watched western leaders present a unified front against Russias invasion of Ukraine. Technology companies lifted US stock indices after a sharp fall in the previous session. Investors are continuing to monitor the war in Ukraine and weigh the Federal Reserves rate hikes amid persistent inflation. NATO leaders met in Brussels Thursday to discuss increasing pressure on Russia, as Ukraine appears to be retaking ground in the war.

US President Joe Biden said Thursday that NATO would respond ?in kind? if Russia uses weapons of mass destruction in Ukraine. The president spoke after a marathon of summit meetings with the European Union, G-7 partners and NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies.

Meanwhile, the dollar index that tracks the greenback against a basket of currencies is seen easing in early Asia on Friday, following an uptrend in the past couple of days. The DXY index was last seen quoting at 98.53.

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