Indian Rupee: Seen Supported By Sustained Foreign Fund Inflows

2 Aug 2022 , 09:22 AM

Sustained buying by foreign investors in Indian market coupled with decline in crude oil prices and weak American currency is expected to keep the Indian rupee supported on Monday. The dollar index that measures the greenback against a basket of currencies was lower by 0.23% at 105.12 tracking sharp decline in US treasury yields that is lingering near the 2.5% mark. On Monday, rupee appreciated by 16 paise to close at 79.06 against the US dollar. At the interbank forex market, the local unit opened higher at 79.16 on gains in stocks and fall in crude oil. The rupee touched a high of 79.00 and a low of 79.22 before settling at 79.08. In the previous session, the rupee had closed at 79.24 against the US dollar. Domestic equity indices ended near the days high with robust gains on Monday. Positive global cues and net buying by foreign institutional investors (FIIs) in the past few sessions boosted the sentiment. The barometer index, the S&P BSE Sensex, jumped 545.25 points or 0.95% to 58,115.50. The Nifty 50 index climbed 181.80 points or 1.06% to 17,340.05. Foreign portfolio investors (FPIs) bought shares worth Rs 2,320.61 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 822.23 crore in the Indian equity market on 1 August, provisional data showed. Finance Minister Nirmala Sitharaman said on Monday that India is still the fastest growing economy whose financial situation is much better than most other countries. Speaking during a debate on the issue of price hike in the Lok Sabha, Sitharaman said the global agencies have ranked Indias economy higher than most countries and there is no sign of recession in the country. Sitharaman added that the government is making efforts to bring down retail inflation below 7%. Overseas, Asian stocks fell on Tuesday as South Koreas inflation rose. Wall Street ended a three-day winning streak and crude prices plunged on Monday as economic data from the US, Europe and China showed demand weakening under inflation pressures, while the looming possibility of recession curbed risk appetite. Powered by Commodity Insights