Indian Rupee: Likely To Stay Under Pressure

30 Aug 2022 , 09:18 AM

Rising risk aversion coupled with sustained foreign fund outflows are likely to continue keeping the Indian rupee under pressure on Tuesday. Besides, strength in dollar, although off its recent peaks could continue to weigh down the currency. On Monday, rupee recovered some of its losses to settle 10 paise down at 79.94 against the US dollar, tracking the strength of the American currency and firm crude oil prices. INR dropped to a fresh all time low beyond Rs 80/$. At the interbank foreign exchange market, the local currency opened at 80.10 and fell to its all-time low of 80.15 against the US dollar in intra-day trade. The local unit finally settled at 79.94 a dollar, down 10 paise over its previous close of 79.84. On July 20, the rupee for the first time closed below the 80-mark at 80.05 against the American currency. Domestic equity barometers ended with major cuts on Monday amid weak global cues. The barometer index, the S&P BSE Sensex, was down 861.25 points or 1.46% to 57,972.62. The Nifty 50 index lost 246 points or 1.40% to 17,312.90. Foreign portfolio investors (FPIs) sold shares worth Rs 561.22 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 144.08 crore in the Indian equity market on 29 August, provisional data showed. Overseas, Asian stocks are trading mixed on Tuesday after sharp falls to start the week following Fed Chair Jerome Powells hawkish speech in Jackson Hole. US stocks closed lower on Monday, adding to last weeks sharp losses on nagging concerns about the Federal Reserves determination to aggressively hike interest rates to fight inflation even as the economy slows. Powered by Commodity Insights