Indian Rupee: Likely To Track Dollar Movement

13 Sep 2022 , 08:49 AM

The Indian rupee is likely to come under pressure as dollar pauses slide in early Asia on Tuesday. However, sustained buying by foreign investors in the domestic market coupled with easing crude oil prices could support the domestic unit. Markets are gearing up for the latest reading of U.S. inflation, with the August data set to be released Tuesday. The report is one of the last pieces of data on inflation the U.S. Federal Reserve will see ahead of its September meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation. On Monday, rupee settled 2 paise higher to close at 79.55 against the US dollar on Monday. At the interbank forex market, the local unit opened at 79.66 against the greenback. It witnessed an intra-day high of 79.47 and a low of 79.72 during the session. It finally ended at 79.55, up 2 paise from its previous close of 79.57. Domestic market settled with strong gains on Monday, tracking firm global market cues. The barometer index, the S&P BSE Sensex, was rose 321.99 points or 0.54% to 60,115.13. The Nifty 50 index gained 103 points or 0.58% to 17,936.35. Foreign portfolio investors (FPIs) bought shares worth Rs 2,049.65 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 890.51 crore in the Indian equity market on 12 September, provisional data showed. Overseas, Asian stocks are trading higher on Tuesday as investors look ahead to the U.S. inflation report for the month of August. Headline inflation in the U.S. is expected to decline in August, as per reports. But core inflation, excluding energy and food, is projected to rise. Wall Street equity indexes closed higher on Monday boosted by weaker dollar and growing confidence that higher prices have peaked. Powered by Commodity Insights