Indian Rupee: Seen Adding To Gains

1 Dec 2022 , 09:19 AM

The Indian rupee is expected to add to latest gains on ideas that the US Fed may be moderate in its rate hike stance. INR appreciated Wednesday, tracking weakness in the dollar overseas with all eyes on Fed Powell speech scheduled later in the global day. Rupee appreciated 34 paise to close at 81.38 (provisional) against the US dollar. A rally in domestic equities also boosted investor sentiment. At the interbank foreign exchange market, the local unit opened at 81.63 and touched an intra-day high of 81.38 and a low of 81.64 against the greenback. The local unit finally settled at 81.38, registering a rise of 34 paise over its previous close. The global stocks have soared on bullish US equities with traders reacting positively to highly anticipated remarks by Federal Reserve Chair Jerome Powell. The latest remarks from Feds Powell suggest the Fed is preparing to downshift to a 0.5 percentage point increase when it gathers in two weeks. Meanwhile, the Indian economy recorded 6.3% annual growth rate in July-September after double-digit surge in the previous quarter. Ministry of Statistics and Programme Implementation (MoSPI) released Indias economic growth data for the second quarter of the current financial year (FY23). Indias gross domestic product or GDP grew by 6.3 per cent in Q2 on a year-on-year basis. In other words, it was 6.3% more than the GDP in the same months in 2021. MoSPI also reported that Indias Gross Value Added (or GVA) in Q2 grew by. 5.6 per cent on a year-on-year basis.Powered by Commodity Insights