Indian Rupee: Likely To Stay Supported

25 Aug 2022 , 09:10 AM

The Indian rupee is likely to gain support in opening trades on Thursday from weakness in the US dollar that has come under pressure ahead of the crucial Fed Chair Jerome Powells speech at the central banks economic symposium at Jackson Hole, Wyoming on Friday. The dollar index that measures the greenback against a basket of currencies is down 0.23% at 108.37. Sustained buying by foreign investors in the Indian markets is also expected to aid the domestic currency. On Wednesday, rupee stayed somewhat range bound restricted by rising crude oil prices while supported by greenback that lost momentum. The domestic currency depreciated 3 paise to close at 79.86 against the US dollar on Wednesday. At the interbank foreign exchange market, the domestic currency opened at 79.84 per dollar. It hovered in a range of 79.68 to 79.87 during the session. The domestic unit finally settled at 79.86, down 3 paise over its previous close of 79.83. Domestic key equity benchmarks ended a volatile session with small gains on Wednesday. The barometer index, the S&P BSE Sensex added 54.13 points or 0.09% to 59,085.43. The Nifty 50 index gained 27.45 points or 0.16% to 17,604.95. Foreign portfolio investors (FPIs) bought shares worth Rs 23.19 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 322.34 crore in the Indian equity market on 24 August, provisional data showed. Overseas, Asian stocks are trading higher on Thursday ahead of the Jackson Hole symposium kicking off stateside. Hong Kongs morning session was canceled due to the issuance of a typhoon warning. In South Korea, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.50%. Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the US Federal Reserves Jackson Hole conference this week. Powered by Commodity Insights