Indian Rupee: Likely To Stay Under Pressure

7 Sep 2022 , 09:09 AM

Starkly firm US dollar index overseas is likely to bring the Indian rupee under pressure in opening trades on Wednesday. The dollar index that measures the greenback against a basket of currencies is seen at 110.53, fresh two decade lows tracking the benchmark treasury yields hovering at 3.34%. However, foreign fund inflows into Indian equities and falling oil prices could benefit the domestic unit. On Tuesday, rupee ended down 2 paise at 79.80 against the US dollar. At the interbank foreign exchange market, the domestic currency opened at 79.80 per dollar. It hovered in a range of 79.80 to 79.91 during the session. The domestic unit finally settled at 79.80, down 2 paise over its previous close of 79.78. Domestic equity benchmarks wiped initial gains and closed with tiny losses flat on Tuesday. The barometer index, the S&P BSE Sensex, declined 48.99 points or 0.08% to 59,196.99. The Nifty 50 index lost 10.20 points or 0.06% to 17,655.60. Foreign portfolio investors (FPIs) bought shares worth Rs 1,144.53 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 632.97 crore in the Indian equity market on 6 September, provisional data showed. Overseas, Asian stocks are trading lower on Wednesday as investors anticipate the Federal Reserve to give its summary on current economic conditions, also known as the Beige Book. Wall Streets main indices closed lower on Tuesday, the first session after the US Labor Day holiday and summer vacations, as traders assessed fresh economic data in volatile trading. The focus will be on Fed Chair Jerome Powells speech on Thursday as well U.S. consumer price data next week for clues on the path of monetary policy. Powered by Commodity Insights