Indian Rupee: Likely To Stay Under Pressure

2 Sep 2022 , 09:20 AM

The Indian rupee is likely to stay cautious against a starkly higher dollar in opening trades on Friday. Besides sustained foreign fund outflows are also likely to weigh down the domestic unit. US benchmark treasury yields are hovering above 3.2% and US dollar index that tracks the greenback against a basket of currencies is at 109.54. On Thursday, rupee declined by 4 paise to close at 79.56 against the US dollar. At the interbank foreign exchange market, the domestic currency opened at 79.55 per dollar. It hovered in a range of 79.30 to 79.66 during the session. The domestic unit finally settled at 79.56, down 4 paise over its previous close. On Tuesday, the rupee had finished at a nearly two-week high of 79.52. Domestic equity benchmarks ended with deep cuts on Thursday, tracking weak global cues. Investors continue to be spooked by fears of aggressive rate hikes by the global central banks. The barometer index, the S&P BSE Sensex, tumbled 770.48 points or 1.29% to 58,766.59. The Nifty 50 index lost 216.50 points or 1.22% to 17,542.80. Foreign portfolio investors (FPIs) sold shares worth Rs 2,290.31 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 951.13 crore in the Indian equity market on 1 September, provisional data showed. Overseas, Asian stocks are trading mixed on Friday as investors look ahead to the U.S. jobs report for August, a key indicator before the Federal Reserves next interest rate decision later this month. The Dow Jones Industrial Average and the S&P 500 ended the first day of September on a high note as traders looked forward to the jobs report Friday. Powered by Commodity Insights