Indian Rupee: Likely To Stay Under Pressure

29 Sep 2022 , 09:12 AM

Mild recovery in the US dollar in early Asia is likely to add pressure on the Indian rupee that has been battered extensively in recent times. Negative trend in domestic equities and significant foreign fund outflows sapped investor appetite. On Wednesday, rupee slipped below the 82-level for the first time against the American currency and was down 37 paise to close at an all-time low of 81.90. At the interbank foreign exchange market, the local currency opened at 81.90, then fell further to close at an all-time low of 81.90 against the American currency, registering a decline of 37 paise over its previous close. The dollar index, which measures the greenback against a group of major currencies, was last at 113.24 after hitting a fresh 20-year high of 114.78. However, Asian stock markets are trading mostly higher on Thursday that could limit sharp losses in the domestic unit. Regional markets are following the broadly positive cues from global markets overnight, as traders reacted positively to the dollar tumbling and bond yields moving sharply lower after news of the bond market intervention from the Bank of England.Powered by Commodity Insights