Indian Rupee: Likely To Stay Supported In Opening Trades

20 Sep 2022 , 09:11 AM

Slightly pull back in the US dollar in early Asia on Tuesday coupled with improving equities is likely to support the Indian rupee in opening trades. Overseas, Asian stocks are trading higher Tuesday as Japans inflation accelerated and China kept its loan prime rate on hold. The dollar index that measures the greenback against a basket of currencies was quoting at 109.32 ahead of the crucial Fed policy meeting where the central bank is expected to continue with its aggressive interest rate hikes stance. On Monday, rupee settled 2 paise lower at 79.80 (provisional) against the US dollar. At the interbank forex market, the local unit opened at 79.70 against the greenback. It witnessed an intra-day high of 79.59 and a low of 79.80 during the session. It finally ended at 79.80, down 2 paise from its previous close of 79.78. Domestic key equity barometers ended with modest gains on Monday. The barometer index, the S&P BSE Sensex, rose 300.44 points or 0.51% to 59,141.23. The Nifty 50 index added 91.40 points or 0.52% to 17,622.25. Foreign portfolio investors (FPIs) bought shares worth Rs 312.31 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 94.68 crore in the Indian equity market on 20 September, provisional data showed. US stocks ended higher on Monday, as investors turned their attention to this weeks policy meeting at the Federal Reserve and how aggressively it will hike interest rates. Investors prepared for an important week, lined up with 13 central bank meetings, with expectations of interest rates rising globally and an ultra-hawkish monetary tightening by the US Feds meeting on Wednesday, followed by the Bank of Japan and Bank of England on the next day. Powered by Commodity Insights