Indian Rupee: Positive Equities To Support

15 Nov 2022 , 09:17 AM

Positive equities are expected to support the Indian rupee in early trades on Tuesday, although strength in the dollar overseas could add some pressure on the currency. Overseas, Asian stocks are mostly trading higher on Tuesday as investors weighed Chinas economic outlook and the Federal Reserves interest-rate path. The dollar index was higher after falling 4% last week, marking its biggest weekly drop since March 2020, after data showing U.S. consumer prices rose less than expected in October and prompted bets for slower hikes. The dollar index, which gauges the greenback against a basket of six other major currencies including the euro, yen, and sterling, rose as much as 0.93% to 107.274 before it pulled back to last trade up 0.3% at 106.87. On Monday, rupee depreciated by 48 paise to close at 81.26. At the interbank foreign exchange market, the local unit opened on a strong note at 80.53, but pared gains and finally settled at 81.26 against the American currency, registering a fall of 48 paise over its last close. On the macro front, Indias retail inflation, which is measured by the Consumer Price Index (CPI), fell to a three-month low of 6.77% in October, down from 7.41% in September. The overall food inflation, which accounts for nearly half the CPI basket, came in at 7.01% in October as against 8.60% in the preceding month.Powered by Commodity Insights