Indian Rupee: Pause In Dollar Rally Likely To Support

6 Sep 2022 , 09:03 AM

The Indian rupee is expected to be supported in opening trades on Tuesday by a pause in dollar rally overseas. Firm Asian equities are also likely to aid the domestic currency. However, rising oil prices and sustained sell off in domestic equity market by foreign investors could restrict gains in the currency. On Monday, rupee appreciated 8 paise to close at 79.79 against the US dollar. At the interbank forex market, the local unit opened at 79.84 against the greenback. It witnessed an intra-day high of 79.79 and a low of 79.90 against the American currency during the session. It finally ended at 79.79 against the US dollar, up 8 paise from its previous close of 79.87. Domestic equity indices registered impressive gains on Monday, shrugging off negative global cues. The barometer index, the S&P BSE Sensex, advanced 442.65 points or 0.75% to 59,245.98. The Nifty 50 index added 126.35 points or 0.72% to 17,665.80. Foreign portfolio investors (FPIs) sold shares worth Rs 811.75 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 533.77 crore in the Indian equity market on 5 September, provisional data showed. Overseas, Asian stocks are trading mixed on Tuesday ahead of the Reserve Bank of Australias rate decision. The Reserve Bank of Australia is expected to raise interest rates by a half point to 2.35%, as per reports. US stocks were closed on Monday on account of Labor Day. Crude oil prices rebounded after OPEC and key allies such as Russia agreed to cut production quotas by 100,000 barrels per day in October. Powered by Commodity Insights